As some Canadians actively boycott Loblaw over high prices, the grocer is now rolling out a store where you can buy more than half of the products with a five-dollar bill.
What happened: Loblaw is piloting a new discount store concept under its no name banner, starting with three locations in Ontario. The stores will sell fewer products than other chains, including its existing discount store No Frills, but will offer prices that are up to 20% cheaper.
- The stores will take a bare-bones approach to keep prices low, including reducing store hours, only selling non-refrigerated foods, and using second-hand shelves.
Why it matters: Nearly 60% of Canadians are on the hunt for discounted groceries at No Frills, FreshCo, and, increasingly, Dollarama. With sales now driven primarily through these discount brands, grocers are starting to cater even more to budget-conscious consumers.
- Empire, the parent of Sobeys, has opened 52 of its 147 FreshCo locations in the last six years. Meanwhile, Loblaw announced earlier this year that it will invest $2 billion to create 40 new discount stores.
Bottom line: The no name brand might save you money on dog treats and potato chips, but shoppers will have to look elsewhere for deals on more nutritional (and pricey) grocery items, like meat and fresh produce.—LA