We have two Zellers in our city. One will become a Target. The other is a location that Target sold to Walmart, so it is closing in June, and will become a Walmart. Because it is closing, everythign is on sale, including shelving, fixtures, etc. I did a little comparison. At the other end of the mall is a 'No Frills' store (part of the Loblaws/SuperStore family).
I compared peanut butter, shampoo, swiffers, and a few other groceries. Same brand, same size package. With 10% off for closing, the peanut butter (1kg) was $0.10 cheaper. Everything else, even with the 10 to 30% off due to closing, was more expensive at Zellers. Compared to the store at the other end of a small mall.
Obviously, Zellers' business model does not work, hence its demise.
Well, no, they're ALL being let go. That's what happens when a business is sold and transformed, often everyone is let go, and they start from scratch. Employees of the former iteration usually have a first chance at the new jobs, but management is under no obligation to hire them all.