80 New Stores, Focus on Discount Groceries and Pharmacy Services

A Focus on Discount Stores and Pharmacy Services

Loblaw Companies Limited (L-T) has announced ambitious plans to open 80 new grocery and pharmacy stores in 2023, with a significant focus on discount grocery formats. This expansion is part of a larger $10 billion investment over the next five years, with $2.2 billion allocated for this year alone.

The company's strategy reflects the changing consumer landscape in Canada, where inflation and rising interest rates have prompted shoppers to seek more affordable options. Loblaw has been at the forefront of this shift, actively expanding its discount banners like No Frills, FreshCo, and Food Basics.

"This investment will have a positive impact across the country," said Loblaw CEO Galen G. Weston in a press release. "From opening one of the largest fully automated distribution centres in North America, to introducing dozens of small-format, hard discount stores to communities that need them most, we are committed to providing Canadians with the best possible value and convenience."

In addition to new store openings, Loblaw plans to renovate over 300 existing grocery and pharmacy locations in 2023. The company will also continue to modernize its supply chain, including the completion of a new distribution centre in East Gwillimbury, Ontario.

Loblaw's expansion plans also include a focus on pharmacy services. The company will add approximately 100 new pharmacy care clinics to Shoppers Drug Mart locations, expanding its network of clinics that provide assessment and treatment for common ailments.

"I think that will be welcomed as more services potentially transfer from doctors to pharmacists," said retail analyst Bruce Winder.

Loblaw's significant investment in discount stores and pharmacy services reflects its commitment to adapting to changing consumer needs and providing Canadians with greater value and convenience.