Loblaw to test no-frills, discount grocery store concept
Loblaw Companies Ltd. is piloting a new ultra-discount store concept named after one of its private brands.
The Canadian grocery giant will open three stores under the No Name banner in the Ontario province starting in September in Windsor, St. Catharine and Brockville. Loblaw said the new format 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.
According to Loblaw, the No Name stores will reduce operating costs by a variety of ways, including:
•Shorter operating hours (10am-7pm;)
•Smaller assortment (1,300 products), making the store is less complicated to run;
•No refrigeration (no dairy or fresh meat products),
•Reused fixtures – shelves, cash lanes – to minimize building costs;
•Fewer weekly deliveries, reducing logistic costs; and
•Limited marketing and no flyers.
"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 Per Bank, president and CEO of Loblaw. "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."
Loblaw said that customers can expect a small range of frozen food items, complemented by pantry staples, household necessities, and shelf-stable bakery and produce items. The curated lineup of products aims to ensure every item on the shelves contributes to the store's mission of affordability and quality.
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“These No Name stores will have a limited selection of 1,300 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 unchartered territory and while success isn't guaranteed, our commitment to creating value and meeting customer needs remains unwavering."
Loblaw Companies Limited is Canada's largest food and pharmacy chain, operating approximately 2,500 stores along with national e-commerce options.
