One of Canada's largest grocers is seeking to respond to the country's rising food prices with a pilot program to roll out an independent portfolio of the high-profile, value-based No Name brand.
Loblaw Companies' plans to unveil such No Name stores in the Ontario cities of Windsor, St. Catharines and Brockville in September. The stores could reduce grocery prices by up to 20% by limiting the product lines, including refrigerated goods.
"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 of Loblaw's hard discount division, in a statement. "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 controlled 29% of the grocery market in Canada in 2022, according to Statista, and has fended off American rivals like Walmart, which controls 7.5% of the grocery market in Canada.
Loblaw operates 2,500 stores under multiple banners, including Loblaws, Real Canadian Superstore, Shoppers Drug Mart, T&T Supermarket and its discount No Frills brand, known for carrying No Name products, known for its simple branding that dates back to 1978.
The No Name stores aim to reduce operating costs in several ways, including shorter store operating hours, limited marketing, no refrigerated products and fewer weekly deliveries.
Stores will have a small range of frozen food items, complemented by pantry staples, household necessities, and shelf-stable bakery and produce items.
The move follows an announcement by Loblaw last month that it would be opening its second small format, No Frills, in Toronto's Liberty Village. The smaller, 10,000-square-foot store is half the size of a regular No Frills, allowing the company to get its discount brand into more neighbourhoods.
The federal government held committee meetings last year to address grocery affordability and has been actively encouraging foreign grocers to come to Canada to create more competition.