Towers Department Stores

Towers Department Stores was a Canadian discount department store chain that operated primarily in Ontario and several Atlantic and Quebec markets before disappearing as an independent banner in 1991. The business originated as the Canadian extension of Towers Marts, a chain based in New York. Its first Canadian location opened on November 15, 1960, at Lawrence Avenue East and Midland Avenue in Scarborough, Ontario. The Canadian operation expanded through a network of stores in shopping centres and suburban retail locations, offering a broad selection of general merchandise rather than focusing on a single specialist category. The chain's operating structure reflected a concession-based department store model. Individual departments were commonly run by licensed concessionaires, allowing Towers locations to provide a range of merchandise and services within one store while sharing operating responsibilities with independent operators. Depending on the location, stores could include restaurants, pharmacies and photographic laboratories. Some outlets were physically associated with IGA or Food City grocery stores, creating combined food-and-general-merchandise destinations. Towers' early Canadian history was unsettled. In 1962, a group of Canadian Towers concessionaires incorporated as Allied Towers Merchants Ltd. After Towers Marts entered bankruptcy in 1963, Allied Towers Merchants purchased the 13 Canadian stores. The acquisition initially covered 43 percent of the outstanding shares, but Allied Towers Merchants subsequently obtained full control of the Canadian stores. The chain later came under the ownership of the Oshawa Group, a Canadian grocery retailer and distributor that used different banners and operating approaches in regional markets. In Quebec, stores initially traded under the Towers name. Beginning in April 1971, stores in the Greater Montreal area were renamed Bonimart as part of the Oshawa Group's effort to give its Quebec subsidiaries a stronger French-market identity. Towers continued to be used elsewhere, and both names existed within the wider Canadian operation. The business promoted itself as a family-oriented value retailer, using slogans that emphasized recurring sales, family shopping and practical merchandise. Its advertising mascot was Sparky, an animated squirrel; during the period surrounding the chain's sale, advertising showed Sparky alongside Zellers' bear mascot, Zeddy. By October 1990, the Towers and Bonimart network comprised 51 stores. Hudson's Bay Company purchased the chain with the intention of integrating most of the locations into its Zellers subsidiary. The transaction attracted opposition from F. W. Woolworth Company, which operated Woolco stores in Canada and also sought to acquire the business. The final transition ended Towers as a distinct national retail banner. In April 1991, 47 stores were rebranded as Zellers. One location was transferred to The Bay, while other sites were sold or closed; remaining stores operated clearance sales under the old names, with some continuing into the fall of 1991. The Towers name subsequently ceased to function as an operating department-store brand. The ownership history of the Towers name itself is unclear, while the Bonimart trademark became associated with Sobeys, the successor to the Oshawa Group. Former Towers sites were later occupied by a variety of retailers, including Zellers, Walmart, Target and other businesses, but those later occupants were not part of the Towers brand. Towers is therefore best understood as a historical Canadian discount department-store chain whose network and operating model contributed to the expansion of larger Canadian mass-merchandise banners before its final absorption into Zellers.

Towers Department Stores was the Canadian retail operation associated with Towers Marts, a New York-based discount department store chain. The first Canadian Towers store opened on November 15, 1960, in Scarborough, Ontario, at the intersection of Lawrence Avenue East and Midland Avenue. The Canadian network expanded across Ontario and into Quebec and the Atlantic provinces, using a mix of shopping-centre stores and standalone suburban locations. The company operated in a period when Canadian department stores increasingly combined apparel, household merchandise, seasonal goods and other everyday products under one roof. Towers used a concession-based model in which departments were operated by licensed concessionaires. This allowed a single store to contain multiple retail departments and service businesses. Some stores included restaurants, pharmacies and photo laboratories, while others were paired with IGA or Food City grocery stores. The Canadian business underwent an important ownership change in the early 1960s. In March 1962, Towers concessionaires incorporated Allied Towers Merchants Ltd. Towers Marts subsequently went bankrupt in 1963, and Allied Towers Merchants purchased the 13 Canadian stores. The company initially acquired only 43 percent of the outstanding shares before eventually taking full control. The Canadian chain later became part of the Oshawa Group, a grocery retailer and distributor that operated several retail and food-related businesses. Branding differed by region. In Quebec, the stores initially used the Towers name, but the Oshawa Group began converting Greater Montreal locations to Bonimart in April 1971. The change was intended to give the Quebec operation a more distinctly French-market identity. Towers remained the principal name in other markets. The two banners were nevertheless part of the same broader Canadian chain and shared similar discount-department-store characteristics. Towers' marketing presented the business as a practical, family-oriented retailer. Its advertising used recurring-sale themes and slogans such as “Extra Special For Your Family” and “Your family's extra special store.” The company also used Sparky, an animated squirrel, as its mascot. Around the time of the acquisition by Hudson's Bay Company, advertising depicted Sparky with Zellers' bear mascot, Zeddy, foreshadowing the operational integration that followed. In October 1990, Hudson's Bay Company purchased the 51 Towers and Bonimart stores. The buyer intended to merge the network with Zellers, its discount-store subsidiary. The acquisition drew opposition from F. W. Woolworth Company, the owner of Woolco in Canada, which also sought to purchase the chain. Despite that opposition, Hudson's Bay proceeded with the integration. In April 1991, 47 stores were rebranded as Zellers. One store was transferred to The Bay, and four other locations were intended to be sold or closed. Some remaining stores held clearance sales under their original banners, with certain sales lasting until the fall of 1991. The conversion ended Towers as an independent department-store chain. Former locations subsequently changed hands among later retail operators, but those later businesses should not be confused with Towers. The ownership of the Towers name after the chain's closure is unclear. The Bonimart trademark became associated with Sobeys, the successor to the Oshawa Group. Towers remains a notable example of a Canadian regional discount chain absorbed into a larger national retail network.

• 1991

  Towers stores were converted to Zellers

  [1]Towers Department Storesen.wikipedia.org

  Forty-seven stores were rebranded as Zellers, ending Towers' operation as an independent department-store banner.

• 1990

  Hudson's Bay Company acquired the chain

  [1]Towers Department Storesen.wikipedia.org

  Hudson's Bay Company bought the 51-store Towers and Bonimart network with plans to integrate it into Zellers.

• 1971

  Greater Montreal stores adopted Bonimart

  [1]Towers Department Storesen.wikipedia.org

  The Oshawa Group began using Bonimart for its Greater Montreal stores to strengthen the Quebec-oriented identity of the business.

• 1963

  Canadian stores were acquired after bankruptcy

  [1]Towers Department Storesen.wikipedia.org

  After Towers Marts went bankrupt, Allied Towers Merchants purchased the 13 Canadian stores and later secured full control.

• 1962

  Allied Towers Merchants was incorporated

  [1]Towers Department Storesen.wikipedia.org

  Canadian Towers concessionaires formed Allied Towers Merchants Ltd. during the chain's early restructuring.

• 1960

  First Canadian Towers store opened

  [1]Towers Department Storesen.wikipedia.org

  The first Canadian store opened in Scarborough, Ontario, on November 15, at Lawrence Avenue East and Midland Avenue.

Family-oriented discount department store offering broad general merchandise through a concession-based store model.

• Discount department stores · 1960

  Towers department stores

  The core Towers format offered broad general merchandise in a family-oriented discount department-store setting. Stores could contain apparel, household products, seasonal merchandise and other everyday goods. Departments were commonly operated by licensed concessionaires, and selected locations also provided restaurants, pharmacies and photo laboratories.

• Quebec discount department stores · 1971

  Bonimart

  Bonimart was the Quebec-facing name adopted for Greater Montreal Towers stores beginning in 1971. It represented a regional branding adaptation by the Oshawa Group while retaining the general merchandise and concession-based characteristics of the broader Towers operation.

• Family-oriented value advertising

  Canada

  Towers advertising emphasized recurring promotions, family shopping and the chain's role as an extra-special family store. Reported slogans included “Extra Special For Your Family,” “You made us part of your family at Towers,” “Your family's extra special store,” and “At Towers, we've got the right idea!”

  Source
• Sparky mascot advertising

  Canada

  The chain used Sparky, an animated squirrel, as its mascot. During the Zellers transition, print advertising showed Sparky together with Zeddy, Zellers' bear mascot.

  Source

• 1991

  Conversion of the store network to ZellersStrategy

  Background

  Hudson's Bay Company intended to consolidate the acquired chain within its Zellers discount-retail subsidiary.

  Action taken

  Forty-seven stores were rebranded as Zellers; another store was transferred to The Bay, while other locations were sold or closed.

  Aftermath

  Towers and Bonimart ceased operating as independent store banners, although some locations continued clearance sales under their original names into the fall.

  Source

• 1990

  Sale to Hudson's Bay CompanyM&A

  Background

  The Towers and Bonimart network had reached 51 stores, and Hudson's Bay Company sought to expand its Zellers network.

  Action taken

  Hudson's Bay Company purchased the chain and planned to merge most locations with Zellers.

  Aftermath

  F. W. Woolworth Company opposed the transaction, but Hudson's Bay proceeded. Most stores were converted to Zellers in 1991.

  • F. W. Woolworth Company — The Woolco owner opposed the transaction because it also wanted to purchase Towers.

  Source

• 1971

  Introduction of the Bonimart banner in QuebecStrategy

  Background

  The Oshawa Group sought to promote a stronger French-market character among its Quebec subsidiaries.

  Action taken

  Greater Montreal stores began changing from Towers to Bonimart.

  Aftermath

  Towers and Bonimart operated as regional names within the wider Canadian chain until the Hudson's Bay acquisition.

  Source

• 1963

  Acquisition of the Canadian Towers storesM&A

  Background

  Towers Marts entered bankruptcy after the Canadian chain had expanded to 13 stores.

  Action taken

  Allied Towers Merchants Ltd. purchased the Canadian stores, initially taking a minority shareholding and later obtaining full control.

  Aftermath

  The Canadian operation survived independently and later became associated with the Oshawa Group.

  Source

1. 1Towers Department Storesen.wikipedia.org