Loblaw Plans to Open 80 New Stores as Part of $10 Billion Investment

Loblaw Companies Limited has announced its plan to open 80 new grocery and pharmacy stores in 2025. Approximately 50 of these locations will be dedicated to discount grocery formats, addressing the growing demand for affordable shopping options.

Investment Strategy

This expansion is part of a significant investment strategy that totals around $10 billion over the next five years. For this year alone, Loblaw has committed $2.2 billion towards this initiative, which will not only establish new stores but also focus on renovations and improvements across existing locations.

Modernizing Operations

In conjunction with the new openings, Loblaw also plans to renovate over 300 of its grocery and pharmacy stores in 2025. An essential part of this investment will be the modernization of the company's supply chain. A new distribution centre in East Gwillimbury, Ontario, is among the projects that started construction in 2022, marking a step towards enhanced logistical efficiency.

Focus on Discount Shopping

As the price of groceries has increased significantly due to inflation and higher interest rates, Loblaw has recognized the need to adapt. The trend towards discount shopping has become evident, with customers increasingly seeking out lower-cost options. Over the past few years, Loblaw has led the charge in this transition, focusing on discount banners such as No Frills, FreshCo, and Food Basics.

Previous Achievements

In 2023, Loblaw successfully opened 31 new discount stores through a combination of conversions and new locations. These efforts were mirrored in 2024, where they experimented with various store formats, introducing smaller No Frills locations and launching a pilot program for a new banner that focuses on significant savings.

Long-term Growth

Since 2020, Loblaw has invested over $8 billion into enhancing and expanding its store network, alongside modernizing its supply chain. This ongoing commitment to improvement aims to have a positive impact on communities across the country, as reiterated by Loblaw's CEO in a recent press release.

The strategic moves made by Loblaw showcase its responsiveness to market trends and consumer needs, aiming to provide more accessible shopping options for all Canadians.

Loblaw, investment, expansion, grocery, discount