Zellers, the once-dominant Canadian discount retailer that disappeared from the national retail landscape more than a decade ago, is making a comeback. The first new store, spanning 60,000 square feet, will open at Londonderry Mall in Edmonton on Friday, August 29. The news was confirmed by landlord Leyad, which owns the shopping centre, making this the first announcement of a tenant filling a former Hudson’s Bay space since the department store chain’s collapse earlier this year.
The announcement will stir nostalgia among generations of Canadians who remember Zellers for its discount prices, loyalty program, and in-store diners. Yet the details around the revival remain shrouded in mystery, particularly regarding ownership of the brand and whether this opening signals a larger national rollout. Sources tell Retail Insider that INC Group’s owner is behind the new chain (details below).
Leyad Leads the Retail Transformation
Montreal-based landlord Leyad has positioned itself at the centre of this revival. In a press release, the company described the Edmonton launch as a “milestone” in Canadian retail.
“We are thrilled to bring back a beloved Canadian brand that stirs up nostalgic memories for many of our shoppers, while providing an opportunity to introduce Zellers to a new generation,” said Henry Zavriyev, CEO of Leyad. “This announcement represents a bold step forward in reimagining retail space and responding to community demand with purpose and vision.”
The company completed the transformation of the former Hudson’s Bay space in just under two months, an unusually fast redevelopment in a Canadian retail landscape often hampered by long construction timelines.
Zavriyev said the mall considered multiple backfill options for the 60,000-square-foot space but ultimately chose Zellers because it aligned with community needs.
“We specifically chose to go with this tenant because we thought that it was the right brand for the market,” Zavriyev explained in an interview with Retail Insider. “I think it’s important to support Canadian brands and Canadian suppliers.”
The Mystery of Ownership
Perhaps the most intriguing element of Zellers’ return is the question of who now owns and operates the brand.
The Hudson’s Bay Company (HBC) previously held Zellers’ intellectual property, having run the chain for decades before selling most of its store leases to Target in 2011. While Canadian Tire purchased HBC’s intellectual property portfolio during its bankruptcy earlier this year, it did not acquire the Zellers name. This leaves uncertainty around how the brand has re-emerged in Edmonton.
When asked directly, Zavriyev declined to identify the new operator. “It’s a Canadian group that operates a number of other brands,” he said, adding only that “they know what they’re doing.”
Retail Insider reached out to industry sources, one of whom strongly speculated that the owner may be INC Group, parent company of Fairweather, International Clothiers and Randy River. The company has experience in discount and value-focused retail, and was recently working on a ‘big project’ in Edmonton.
CBC News has since uncovered federal trademark registries confirming that Hudson’s Bay transferred control of the Zellers name and logo to Les Ailes de la Mode, represented by INC’s president Isaac Benitah. Les Ailes de la Mode is a former Quebec-based department store chain that was previously acquired by Fairweather.
This revelation aligns with industry speculation that Benitah and his network of companies were involved in the revival. For now, however, neither Benitah nor Les Ailes de la Mode has publicly commented on expansion plans or the long-term vision for the brand.
A Soft Launch Before the Official Debut
The Londonderry Mall Zellers will open in two phases beginning with a soft launch Friday, followed by a grand opening later this year. Zavriyev noted that Leyad is primarily focused on ensuring the space is fully activated and that shoppers in Edmonton respond well to the return of the brand.
The store will occupy part of the former Hudson’s Bay footprint at Londonderry, which closed in June 2025. That Bay store had been operating under liquidation for several months before its official closure.
According to Leyad, the new Zellers will carry apparel for women, men, and youth, along with contemporary home décor. While these categories align with the historic Zellers model, details remain sparse, and it is unclear whether other hallmark features of the chain, such as restaurants or loyalty programs, will be revived.
A Brand with a Storied Past
Founded in 1931 by Walter P. Zeller, the chain grew to become one of Canada’s most recognized discount retailers. Zellers expanded nationwide under the slogan “Where the lowest price is the law” and became famous for its Club Z loyalty program and Zeddy, the store’s teddy bear mascot.
At its peak in the late 1990s, Zellers operated approximately 350 stores across Canada. It was acquired by Hudson’s Bay Company in 1978 and played a major role in the Bay’s strategy to dominate discount retail.
By the 2000s, however, the rise of Walmart and later the failed entry of Target Canada contributed to Zellers’ decline. Most locations were shuttered after 2013, though HBC attempted smaller-scale revivals in the 2020s with store-in-store concepts and e-commerce initiatives. These efforts, however, failed to gain traction.
The announcement of a full-line Zellers store in Edmonton marks the first time in more than a decade that the chain has returned to its traditional format.
Londonderry Mall as a Strategic Launch Point
The choice of Londonderry Mall is significant. Located in Edmonton’s northeast, the shopping centre has a strong community base and is among Alberta’s largest enclosed malls, with over 800,000 square feet of retail space.
Leyad acquired Londonderry Mall in early 2025, adding to its growing portfolio of major shopping centres across Canada. The property itself has a history of reinvention. About a decade ago, the centre underwent a substantial overhaul that included a full interior renovation and the addition of a new La Maison Simons department store, which helped modernize the mall and reposition it as a fashion-forward retail destination in the city.
Zavriyev emphasized that the Edmonton market provided a unique opportunity for Zellers’ return. “We think the market in Edmonton will come to the mall and continue to support Canadian brands,” he said.
The Landlord’s Growing National Presence
The Zellers announcement also highlights Leyad’s expanding role in Canadian retail real estate. Founded in 2016, the Montreal-based company has quickly grown into one of the country’s largest private landlords. Its portfolio includes more than two million square feet of commercial space, 2,000 residential units, and a growing portfolio of regional malls.
In 2025, Leyad acquired the Pen Centre in Niagara for $140 million, the St. Albert Centre in Alberta for $60 million, and several other shopping centres in Winnipeg and Atlantic Canada. The company is actively pursuing redevelopment and densification strategies, often blending retail with residential and mixed-use projects.
The addition of Zellers at Londonderry strengthens Leyad’s reputation for quickly redeveloping vacant anchor spaces and attracting nationally recognized tenants.
More from Retail Insider:
Nostalgia vs Reality: Exclusive Poll Shows Canadians Warm to Zellers’ Return but Hesitate to Shop One Year After Relaunch
Inside Zellers 2.0 and its Newly Secured In-House Brand ‘Anko’ [Photos/Analysis]
