Friday January 23, 2026 | VICTORIA, BC
Retail analysis by Mary P Brooke | Island Social Trends
The Zellers department store retail chain plans to expand nationally in Canada.
They recently had a strong store opening in Edmonton, starting the phase of the company’s Canadian 3.0 retail revival.
The Zellers brand seems to appeal to a low-to-middle income customer base.
The store seems to play the role of cultural anchor in shopping malls.
Edmonton boost:
With the Edmonton store performing beyond expectations, Zellers is reportedly actively pursuing new leasing opportunities across the country as part of a national expansion strategy.
“From opening day, the Londonderry Mall location welcomed waves of excited shoppers eager to experience the refreshed Zellers firsthand. Customers responded positively to the store’s approachable format, curated product mix, and accessible price points – all while embracing the nostalgic elements that have defined the brand for generations,” said Zellers in a news release yesterday.
The focus is on major Canadian markets, with flexibility around store footprints and real estate configurations.
“Our goal is to bring Zellers back to communities across the country,” said Zellers executive Isaac Benitah said in a January 2026 statement. “We are already in active conversations with landlords nationwide.”
Retail market analysis:
It’s unknown at this point whether Zellers is recognizing the relatively more robust economy of Alberta’s economy and major cities compared to other parts of the country where consumer disposable income is often significantly challenged during the country’s current affordability crisis.
Lower-income shoppers currently often flock to deep-discount stores like Walmart, SuperStore and Dollar Store. Where Zellers sees their place in that robust ecosystem is unclear.
Relying on nostalgia for the Zellers brand is probably a declining source of interest for many consumers, especially as younger shoppers aren’t as familiar with the brand. Something about the brand doesn’t seem modern and may not attract Alpha-Gen and Beta-Gen shoppers who are comfortable with online shopping.
As Prime Minister Mark Carney said in his World Economic Forum speech in Davos this week: “Nostalgia is not a strategy.”
3.0 coming soon:
Additional announcements related to new store locations, expanded assortments, and future phases of the Zellers 3.0 concept will be shared in the coming months.
The January 22 Zellers statement says the retail is “actively listening” to their customers and “paying close attention to what they’re telling us they want to see more of”.
“That feedback is directly informing how we evolve our offerings, refine the store experience, and introduce new categories and brands over time,” says Zellers.
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