Loblaw is set to expand its presence in Canada with plans to open 80 new grocery and pharmacy stores in 2025, investing $2.2 billion this year as part of a $10 billion, five-year growth strategy. The initiative includes renovations for over 300 locations, as well as the modernization of its supply chain, highlighted by the opening of a fully automated distribution center in East Gwillimbury, Ontario.
Loblaw’s CEO, Per Bank, emphasized the significance of the investment, stating it will have a far-reaching impact across the country, including the introduction of small-format discount stores aimed at supporting communities seeking affordable grocery options.
The move comes as Canadian shoppers increasingly shift toward discount grocery shopping, driven by inflation and high interest rates. Loblaw, along with other major grocers, has been adapting to this trend by expanding its No Frills and Maxi banners and converting existing stores into lower-cost alternatives.
In 2023, Loblaw launched 31 new discount stores and began testing new retail formats, including small No Frills locations and a No Name pilot project aimed at delivering even lower prices than traditional discount stores.
The company has faced public and political scrutiny over grocery price inflation but maintains that its investments are focused on affordability and improving the customer experience. Since 2020, Loblaw has invested over $8 billion in expanding its store network and enhancing its supply chain to meet growing consumer demand for lower-cost grocery options.