Loblaw says that he planned to open 80 new grocery and pharmacy stores this year, of which around 50 will be glowed at a reduced prices.
THE business Said that new locations are part of an investment of around $ 10 billion over the next five years, including $ 2.2 billion this year.
The plans for 2025 include the renovation of more than 300 grocery store and the locations of the pharmacy.
They also involve the modernization of the company’s supply chain, including the initial opening of an East Gwillimbury, Ontario. Distribution center which began construction in 2022.
“From the opening of one of the largest distribution centers entirely automated in North America, to the introduction of dozens of low -format discount stores to the communities that need it most, this investment will have an impact positive across the country, “said the director general by bank in a press release.
Loblaw has been at the forefront of the transition to reduction in recent years while Canadians are looking for means to mitigate inflation and higher interest rates.
He and the other large grocers have put money to stores at reduced prices by opening new locations and by converting certain existing stores to banners at a lower cost.
Loblaw seems to “read the room” with this last announcement, said detail analyst Bruce Winder.
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“That … shows in a way where they go from the point of view of companies,” he said.
Inflation sent the price of the grocery store that hovered after the COVVI-19 pandemic, and buyers responded by looking for more sales and choosing banners at reduced prices like no frills, Freshco and Food Basics on others stores belonging to the big grocers.
The main grocers have also been examined in recent years buyers and politicians, and have denied the accusations that they have benefited from poorly.
During its exercise in 2023, Loblaw opened 31 new stores at reduced prices through conversions or new locations, according to its annual report, divided between its frills without frills and maximum banners based in Quebec.
He also started testing new store formats last year. He opened small No. Frills stores and launched a pilot project involving a new banner based on nameless brand, promising even greater savings than no frills.
During recent profits, Metro and Empire managers said that although discount stores still beat other banners in terms of sales growth, this gap begins to shrink as inflation s is standardized.
But Winder said that despite this, he thinks that the request for discounts does not disappear.
“I personally think that it is a permanent change and it will continue to grow,” he said.
Loblaw said in the press release since 2020, he has spent more than $ 8 billion to improve and extend his store network as well as to modernize his supply chain.
Canadian grocers have invested in their supply chains by emphasizing automation, Winder said.
For example, Metro recently reached the last step in a seven -year supply chain project that uses automation to make its operations more effective.
Loblaw said renovations will include the addition of 100 new pharmacy care clinics to the locations of drug buyers. The company has expanded its network of these clinics, which ensures the evaluation and treatment of certain common diseases.
Winder said it was a timely decision in the difficulties with the Canada’s health system.
“I think it will be welcomed because more services are potentially transferred from doctors to pharmacists,” he said.
& Copy 2025 the Canadian press