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Industry NewsLoblaw expanding discount banners stores across Canada

Loblaw expanding discount banners stores across Canada

A new No Frills opened in Grand Forks, B.C. in November

Loblaw Company has been expanding its discount banner stores across the country as shoppers continue to flock to discount. In recent months, the company opened several No Frills across the country and Maxi stores in Quebec.

The expansion follows comments from Galen Weston, Loblaw chair of the board of directors after third quarter results reported in November that saw No Frills and Quebec discount banner Maxi leading growth for the company with double digit sales.

In 2023 alone, Loblaw opened 23 discount stores and Weston said the company will convert more than 30 stores to discount and open 40 new locations across the country in 2024

Loblaw opened its first-ever No Frills Plus in November, 2023 a new discount store concept in Brampton, Ont.

Weston says he doesn’t see the shift to discount going away any time soon.

“There’s no sign of it slowing down in any meaningful way…Our perspective is that this will continue for the foreseeable future.”

Most recently it opened its 277th and 278th No Frills in November in Waterloo, Ont., and Grand Forks, B.C., respectively.

And while it plans to continue is discount expansion, it’s also rethinking its approach to discount and a recent example is the opening of the first-ever No Frills Plus that opened in Brampton, Ont. in September.

The new concept combines the standard discount banner offerings with expanded services, such as PC Express home delivery and curbside order pickup.

The new No Frills Plus in Brampton, Ont.
The new No Frills Plus in Brampton, Ont.
The new No Frills Plus in Brampton, Ont.

According to Grocery Business columnist Stewart Samuel, who is the director of Retail Futures for IGD, Loblaw has created a stronger value perception by leveraging its strongest value asset with the conversion of a former hypermarket into the No Frills Plus store.

“The launch of new value formats was identified in new IGD research as one of six tactics being deployed globally. The grocery part of the store has the look and feel of No Frills, while all the hypermarket elements have been retained,” noting that the new concept is likely not to be the last. With Per Bank taking up leadership of the business, there’s a lot of European discount intelligence about to land at Loblaw.”

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