Zellers to expand across Canada

Hudson's Bay announced on Tuesday plans to expand its iconic Zellers brand in Canada, increasing the store's footprint in cities across the country.

As part of the expansion, the first pop-up will launch at Hudson's Bay's flagship Queen Street store in June, and will be followed by an additional 20 pop-ups expected to open in August.

The move comes as the company secures $240 million of additional liquidity to further invest in and grow its operating businesses.

The pop-ups are expected to help measure customer response in each market and determine the best fits for the Zellers store experience. Looking ahead, after testing pop-up boutiques within Hudson's Bay stores, Zellers intends to open larger footprint stores in some or all of those same locations.

"We have always said that we will listen to Canadians, and they will tell us where to grow," said Sophia Hwang-Judiesch, president, Hudson's Bay. "With these pop-ups, our expansion strategy will be fueled by the interest and feedback from our customers across the country."

The Canadian discount brand officially made its return to the country earlier this year within Hudson's Bay. Four locations opened in British Columbia, three in Alberta, one each in Saskatoon and Winnipeg, nine in Ontario, five in Quebec and two in Nova Scotia.

The Zellers department store was founded in 1931 and acquired by HBC in 1978. In 2011, HBC sold the majority of its remaining Zellers leases to Target Corp., closing most stores by 2013.

"As we diversify our consumer offerings, we are strongly positioned to expand on the retail experience customers have come to expect from Hudson's Bay, Saks Fifth Avenue, Saks Off Fifth and now Zellers," added Richard Baker, governor, executive chairman and CEO of HBC.

"With this incremental liquidity, we will strengthen our businesses and build upon the great foundation we have established."

Zellers to expand across Canada

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