Loblaw to Launch Discount Chain

Canadian grocer Loblaw Cos. Ltd. (Brampton, Ont.) has unveiled plans to try out a new, value-based concept – dubbed no name – in three towns in Ontario province. The stores will help customers save up to 20% on everyday grocery and household essentials, by lowering operating costs and carrying only a targeted assortment of products, the company said.

“Our goal is simple – providing food and essential household items across a limited range of national brands and no name brand products at our lowest possible price,” said Loblaw President and CEO Per Bank. “Since food inflation took off globally, we have been laser-focused on doing what we can to keep prices lower for customers, including opening more discount food locations in more parts of the country. This new test concept allows us to pass on lower prices to our customers – it’s a completely different and simplified shopping experience.”

The no name stores will seek to reducing operating costs through a variety of ways, including:

• No refrigeration (no dairy or fresh meat products)
• Reused fixtures – shelves, cash lanes – to minimize building costs
• Shorter operating hours (10 a.m.-7 p.m.)
• A smaller assortment of items
• Fewer weekly deliveries, reducing logistic costs

“These no name stores will have a limited selection of 1300 products, but these are many of our top-selling pantry staples and household goods throughout the province, so we know they’re what customers buy most and what will bring them the biggest savings,” said Melanie Singh, President, Loblaw’s Hard Discount Division. “This is a test and learn project, and we’re planning to listen and adjust quickly. The pilot is uncharted territory and while success isn’t guaranteed, our commitment to creating value and meeting customer needs remains unwavering.”

The no name store pilot stores will open next month in Windsor, St. Catharines and Brockville