Market News

Zellers Tests Grocery Concept

Zellers is unveiling a new face in an effort to be more things to more shoppers. Among its new features is a grocery section, called Neighbourhood Markets. Except in cases where mall operators have existing contracts promising exclusivity to grocery retailers, all new stores will include the new department, which will sell frozen and refrigerated food. The retailer’s recently opened prototype store in Toronto’s Cloverdale Mall is 100,000 sq. ft. In addition to the grocery section, it also has a large cosmetics counter, take-out food available from in-store diners and an array of exclusive fashion brands, including Alfred Sung Home furniture. Of Zellers 298 stores nationwide, parent company Hudson’s Bay Co. has renovated 176. It plans to close some of its older locations. By 2007, it will operate 275 stores, all of them designed to the 100,000-sq.-ft. prototype. Source: Canadian Grocer E-Newsletter, Aug.12,05.