Zellers is back in Toronto, here’s why experts say nostalgia alone won’t fill its stores

The Retail Prophet Doug Stephens discusses Zellers’ comeback to the Canadian market and whether nostalgia will attract customers.

Zellers has officially made its grand opening in Toronto, reviving one of Canada’s most recognizable brands that experts say will need more than just nostalgia to stick around.

The discount retailer opened a new store Thursday morning on Orfus Road (80 Orfus Rd.), marking its first traditional location in the Greater Toronto Area since the last remaining city store closed back in 2020. Most stores closed in 2013.

• A look back at the history of Zellers

“They’ve realized there’s definitely a movement toward affordability,” said retail analyst Bruce Winder, who attended the store opening. “We’re in an affordability crisis, and that market is far from saturated.”

The Toronto location follows the opening of a standalone Zellers store in Edmonton last fall and comes as the company explores additional sites in markets including Brampton, Scarborough, Ottawa, Calgary and Vancouver. An additional location however is set to open at Windsor’s Tecumseh Mall in July.

Chief operating officer Joey Benitah previously said the long-term goal is to rebuild the chain’s national footprint.

“Ultimately, we’re looking to be in every major market from coast to coast,” he said in a previous interview.

Nostalgia may get shoppers in the door

The return is likely to resonate with Canadians who remember the retailer’s heyday, when Zellers operated many stores across the country and became known for everything, such as Club Z loyalty cards introduced back in 1986.

But experts say nostalgia can only take the brand so far.

“I’ll give you the simple answer first: no, nostalgia won’t be enough,” said retail analyst Doug Stephens in an interview with CP24 Breakfast.

Winder too, also echoed that same viewpoint.

“I would be careful about nostalgia as a retail strategy. I don’t think it makes sense as a retail strategy by itself. I see it more as the icing on the cake.”

He said nostalgia may attract curious shoppers and generate publicity, but long-term success will depend on offering competitive prices and products people actually want and can actually rely on.

“It’ll get people there once, which is great. It’ll get media talking about it, but to really keep people coming back to the store, you need to offer value,” he noted.

Competing in a crowded discount market

The new store will carry apparel, home goods, luggage and seasonal merchandise. It was also feature familiar brands on shelves such as Adidas, Juicy Couture, Dickies and Von Dutch.

Stephens said the retailer enters a highly competitive landscape dominated by major longtime players such as Walmart, Canadian Tire, Dollarama and Giant Tiger.

“At the end of the day, you have to bring some sort of unique value to the market, some sort of unique experience or product assortment that the consumer is not going to find anywhere else,” he said.

For Winder, the choice of Orfus Road is an early signal of the company’s intentions.

“Orfus Road is a value street, a value area,” he said. “It’s definitely sending a message of value to the consumer that they mean business.”