New store format saves up to 20% on food and household necessities

BRAMPTON, ON, Aug. 22, 2024 /CNW/ - Loblaw Companies Ltd. (TSX: L), ("Loblaw") today announced its plans to pilot a new concept, value-based no name store in three Ontario markets. The no name store 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.

mock up of new no name store front (CNW Group/Loblaw Companies Limited - Public Relations)

"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, 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."

The no name stores are reducing operating costs through a variety of ways, including:

  • Shorter operating hours (10am-7pm)
  • Smaller assortment means the store is less complicated to run
  • Limited marketing and no flyers
  • No refrigeration (no dairy or fresh meat products)
  • Reused fixtures – shelves, cash lanes – to minimize building costs 
  • Fewer weekly deliveries, reducing logistic costs

"Our commitment to customers is that products at the no name store will be up to 20% less than the regular retail price on a comparable product at any of the four main discount grocers in that local area. 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."

Customers can expect a small range of frozen food items, complemented by pantry staples, household necessities, and shelf-stable bakery and produce items including bread, bagels, apples, bananas, peppers, and carrots. This curated line up of products ensures every item on the shelves contributes to the store's mission of affordability and quality. 

The no name store is piloting in three markets in Ontario, beginning in September 2024: Windsor, St. Catharines, and Brockville.

About Loblaw Companies Limited

Loblaw Companies Limited is Canada's food and pharmacy leader, as well as its largest retailer and private sector employer. With over 1 billion transactions each year in its unmatched network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many of Canada's favourite and most-trusted brands: President's Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The Company's loyalty program, PC Optimum, has more than 16 million active members and is one of Canada's largest and best-loved reward programs.

Loblaw's purpose is to help Canadians live life well. It makes good food affordable, health, beauty and wellness accessible, saving for the future possible, and essential style achievable.

Loblaw pilots no name store to help customers save on food and household essentials (CNW Group/Loblaw Companies Limited - Public Relations)

Loblaw pilots no name store to help customers save on food and household essentials (CNW Group/Loblaw Companies Limited - Public Relations)

SOURCE Loblaw Companies Limited - Public Relations

Copyright 2024 Canada NewsWire

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