Loblaw piloting new no name store
Loblaw Companies Ltd. announced plans to pilot a new concept, value-based no name store in three Ontario markets. Loblaw says 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.
"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," says 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 will reduce operating costs by having shorter hours (10 a.m.-7 p.m.), fewer weekly deliveries to reduce logistic costs, no flyers and a more limited marketing budget, and the stores will feature reused shelving, cash lanes and other fixtures to reduce building costs.
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Customers can also 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.
"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," adds 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."
The no name store is piloting in three markets in Ontario, beginning in September 2024: Windsor, St. Catharines, and Brockville.
