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zellers

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Zellers was a major Canadian chain discount department retailer based in Brampton, Ontario. It was founded in 1931, and was acquired by Hudson's Bay Company (HBC) in 1978. A series of acquisitions and expansions allowed Zellers to reach its peak in the 1990's, with 350 stores across the country in 1999. However, fierce competition by Walmart Canada and an inability to adjust to the increasingly volatile retailing industry resulted in Zellers losing significant ground in the 2000's. At the same time, HBC's new owner NRDC Equity Partners was focusing on bolstering and re-positioning Zellers sister chain, The Bay, with an upscale and fashion-oriented direction, and saw Zellers as a determent to the turnaround. In January 2011, HBC announced that it would sell the lease agreements for up to 220 Zellers stores to the US. chain Target for $1.825 billion. In turn, Target announced its intent to convert a large number of them to Canadian locations of Target, and re-sell the remainder to other parties such as Walmart Canada, resulting in their liquidation and eventual closure. While HBC retained 64 Zellers locations, it announced on July 26, 2012 that the majority of them would be liquidated and closed by March 31, 2013 due to their lack of profitability. Two Zellers branded stores continue to operate in Ontario, which operate as liquidation stores for HBC's other banners.

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