Zellers is back (again), and while nostalgia gets the headlines, the real story is about new jobs, Gen Z workers and the confidence this comeback sends to Canadian SMBs.
Zellers is officially back. After multiple relaunches and retail reincarnations, the beloved Canadian discount chain opened its first new store at Edmonton’s Londonderry Mall on 30 October 2025. But beyond the buzz and throwback branding, Zellers’ return is shaping up to be a quietly important story about employment—particularly for young Canadians—and what its re-entry signals for the country’s retail-focused small and medium-sized businesses (SMBs).
The new Zellers is leaner, sharper and more focused. Gone are the sprawling toy aisles, pharmacies and oversized footprints. Instead, Zellers 3.0 is taking a value-driven approach with stores between 30,000 and 50,000 square feet. It’s targeting essential categories: men’s, women’s and kids’ apparel, home goods, luggage and seasonal items. As COO Joey Benitah put it in an official press release published via Newswire: “We don’t need 250,000 square feet. That’s not our vision for the future.”
At the heart of this new vision? Jobs.
Zellers’ revival is landing in a retail landscape still recovering from mass closures, post-pandemic shakeups and ongoing cost-of-living pressures. For Gen Z and Millennials, two cohorts hit hardest by underemployment and unstable part-time work, this comeback could mean more than weekend shifts. It signals renewed hiring in a sector many had written off.
What Zellers’ rebirth means for Gen Z & Millennial jobs
And that’s where the opportunity lies for SMBs. If Zellers can relaunch with a leaner model, regional rollouts and a youth-friendly brand strategy, it provides a playbook for other retail operators. Focused formats. Local hiring. Scaled-back inventories. A bet on people over footprint.
It’s not just the storefronts getting a reboot—it’s the thinking. Zellers’ parent company, Les Ailes de la Mode Inc., is owned by the Benitah family, who picked up the Zellers trademarks, logo, loyalty program and even mascot Zeddy earlier this year. Court documents suggest the price tag? Just $100,000. For a brand with near-mythical status in Canadian retail, it was a bold move—and one that reflects the kind of decisive thinking many SMBs can relate to. “We’ve always loved the brand,” Benitah told The Canadian Press. “We’ve always understood the value and the storied history that the brand has.”
And Canadians are responding. With plans to open additional locations in major markets, including potential reuses of former Hudson’s Bay properties like Yorkdale, the Benitahs are betting on nostalgia-fuelled relevance and new consumer behaviour. There’s even a Zeddy revival in the works, with a kids-focused custom teddy bear zone launching in 2026; a move that could lead to even more youth employment opportunities. “Retail has always been one of the first rungs on the ladder for young workers,” says Kevin Kliman, President of Canadian Business at Employment Hero. “Seeing these jobs come back—especially in communities outside major metros—is a strong signal that the next generation is being invested in again. That’s not nostalgia. That’s progress.”
Zellers aims to shift to a smarter retail strategy
But what’s just as telling as what’s included in Zellers’ comeback is what’s been left out. The retailer is skipping toys and pharmaceuticals this time—two categories now overwhelmingly dominated by Amazon and Walmart. Benitah was clear: if they can’t offer the best value in a department, they won’t touch it. It’s a sharp, strategic focus on where they can compete and win, not just tread water.
The updated merchandise mix reads like a guide to getting back to basics: Reebok, DKNY, Spyder, Disney and Nickelodeon products will line the shelves. It’s retail, reimagined for efficiency—and it’s hitting the sweet spot between nostalgia and necessity.
For Gen Z job-seekers, this approach means more than cashier roles. There’s potential for broader work experience across visual merchandising, community activations and customer experience—areas where younger workers often shine and innovate. The phased rollout and regional footprint also open up pathways in locations often overlooked by large chains.
Zellers’ comeback isn’t just a Toronto story. It’s playing out in suburbs and secondary cities where SMBs make up the employment backbone. These are the same areas where younger Canadians are increasingly working, living and building their early careers.
A playbook for Canadian retail SMBs
The other piece? Purpose. The Benitahs have hinted at future initiatives like a Zeddy-themed charity partnership for camps supporting kids affected by cancer, offering another layer of community impact and meaningful employment for young people.
What we’re seeing is more than a retail relaunch. It’s a resurgence in belief: that Canadian-made retail, built for local communities, can still thrive. And that belief might be contagious. The lesson for SMBs: the comeback playbook is in reach. Lead with purpose, be ruthless about focus and don’t underestimate the power of hiring the next generation. Retail isn’t dead. It just needed a reboot.
