Zellers is looking to expand nationally after coming back to life in Edmonton in 2025, the retailer announced Thursday.

The discount retailer said the successful location at the Leyad-owned Londonderry Mall underscored the strength of the company’s small-format department store model and its ability to resonate with today’s Canadian consumer.

“Launching our first store exceeded our expectations in every way,” said Joey Benitah, chief operating officer of Zellers. “The excitement we saw on opening day has continued well beyond the launch, with consistent customer traffic, overwhelmingly positive feedback, and sales performance that continues to surpass our internal targets. Canadians have shown a deep love for the Zellers name, strong enthusiasm for the new store concept, and genuine appreciation for the product selection and value we’re delivering. Seeing that level of sustained engagement has been incredibly rewarding, and it reinforces that we’re building something truly meaningful.”

The mothballed Zellers brand was reborn in a former Hudson’s Bay Company store space at Londonderry. Last summer, Zellers became the first retailer to occupy a former Bay space after the iconic department-store chain shut down.

Zellers took up one floor comprising about 60,000 square feet in the Bay’s former two-storey location.

The summer opening was a soft launch, and Zellers staged an official grand opening ceremony in the fall. Ironically, the Bay previously owned the Zellers chain before shutting down all of the discount retailer’s locations more than a decade ago. The Bay resurrected some Zellers stores briefly in recent years, but all were closed again.

It remains to be seen whether Zellers will seek to move into other former Bay locations. The chain is now owned and operated by Benitah’s family, which owns fashion retailer Fairweather and its subsidiary, discount retailer Ailes de la Mode. Ailes acquired the Zellers trademarks from the Bay in August 2025.

As Connect has previously reported, Ailes is seeking to move into a former Bay space at Toronto’s Yorkdale Shopping Centre. The mall’s owner, Oxford Properties, has asked an Ontario court to block the move on grounds that the discount retailer does not fit into Yorkdale’s luxury motif. Ailes wants to acquire a former Bay lease tied to the Yorkdale space through a receivership process involving the Bay’s joint-venture with RioCan REIT.

In addition, Ailes is seeking to take over two former Bay spaces at malls in Montreal and Quebec City.

Other former Bay spaces are available in prime locations after an Ontario court rejected B.C. mall owner Ruby Liu’s bid to acquire 25 leases tied to former Bay stores in B.C., Alberta and Ontario.

Zellers said it is actively pursuing new leasing opportunities across the country as part of its phased national expansion strategy. The chain aims to secure locations in every major Canadian market while deploying a flexible real estate approach designed to ensure “thoughtful” and sustainable growth.

“Our goal is to bring Zellers back to communities across the country, and we’re already in active conversations with landlords nationwide as we explore opportunities in all major Canadian markets,” said Benitah. “At the same time, we’re actively listening to our 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.”

Zellers plans to unveil new store locations in coming months.

Pictured: Zellers mascot Zeddy at the Zellers store at Londonderry Mall in Edmonton

Photo: CNW Group/Zellers