Zellers: Festive Finale

john street

Section I — Basic information

Business Results Period (Consecutive Months): November 1 – December 31, 2011

Start of Advertising/Communication Effort: November 1, 2011

Base Period as a Benchmark: November 1 – December 31, 2010

Section II — Situation analysis

a) Overall Assessment

Zellers is the country's second largest discount department store and a Canadian icon. But after years of under-investment and the entry to the Canadian marketplace of the U.S. behemoth, Walmart, the Zellers brand was fighting for its life.

And just as Zellers had started to turn the business around and address over-cluttered aisles, unfocused merchandising strategies and a disconnect with their busy-mom consumer, another U.S. retailer came knocking.

In January 2011, after over 80 years in operation, Zellers announced it would be closing its doors. American super-chain Target would be entering the Canadian market and taking on the majority of Zellers' leases, leading to store closures beginning in early 2012.