Even back when Walmart first entered the Canadian market, Zellers couldn't compete with Walmart, despite the former often having better real estate (the latter had assumed leases for a lot of Woolcos, for example, which were usually in second- or third- tier malls (or plazas) and less desirable locations generally).
The most recent relaunch of Zellers (store within a store concept, by Hudson's Bay) was embarrassingly bad, and by comparison, almost made Target Canada look like a massive success.
In the discount retailing world, you had better go big, or go home.
Competing head to head with Walmart is a recipe for disaster. Better to differentiate, as Canadian Tire has done (which was prematurely given a death sentence by many retail analysts when Walmart really started expanding into Canada).
Canadian Tire has depth and breadth in categories where Walfart is very weak. Which also happen to be categories that offer higher margins (vs. groceries and FMCGs, which offer margins that amount to pennies on the dollar, or worse).
Likewise, Dollarama. There happens to be a huge market, comprised of people that just don't want to spend more than a few dollars on everyday household goods, party supplies, and snacks/Candy.
What I don't understand is Shoppers Dog Fart. Absolutely awful prices, terrible ambience, very little service....and yet, they are everywhere (often bereft of customers). Walmart is cheaper (usually, much, much cheaper) than Shoppers Dog Fart on EVERYTHING. And Costco has been expanding its reach into categories that are usually associated with Drugstores.
It wasn't always that way. I recall when Shoppers had decent prices (and a lot of great markdowns), but then Galen acquired it, and decided that Canadians were ready to pay twice as much for cough medicine and chocolate bars at Shoppers Dog Fart vs. Walfart.
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The whole problem with the world is that fools and fanatics are always so certain of themselves, and wiser people so full of doubts. (Bertrand Russell). Sweet Loretta fart thought she was a cleaner, but she was a frying pan. (John Lennon)
Last edited by MolsonExport; Sep 4, 2025 at 5:52 PM.
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