Loblaw Launches No Name Ultra-Discount Grocery Stores in Ontario

Loblaw Companies Limited has announced the pilot launch of its ultra-discount grocery stores under the No Name brand in Ontario. The new stores aim to deliver lower prices by minimizing operational frills.

The first three No Name stores are scheduled to open in September in the cities of Windsor, St. Catharines, and Brockville. This initiative builds on the success of Loblaw’s existing discount brand, No Name, which is known for its distinctive bright yellow packaging.

According to Per Bank, the President and CEO of Loblaw, the No Name store will offer a simpler shopping experience. By reducing the complexity associated with traditional grocery operations, the company aims to pass significant savings on to customers.

The No Name stores will feature a streamlined product selection, with approximately 1,300 individual products compared to the 7,000 products available in smaller-format No Frills locations. The limited inventory will include frozen items, pantry staples, and packaged bakery goods, but will not include refrigerated items such as dairy or fresh meat.

Loblaw intends to keep operating costs low by reusing existing fixtures like shelves and cash lanes. The stores will operate on shorter hours, from 10 a.m. to 7 p.m., and will not use flyers or extensive marketing.

The pricing strategy for No Name stores will see prices that are up to 20 percent lower than comparable products at nearby discount retailers. Additionally, more than 75 percent of the products will be priced over 10 percent lower than similar items at No Frills stores.

This concept is inspired by an earlier attempt at a similar model in Denmark, where Bank previously tested a discount store called Basalt. That venture, however, was discontinued after seven months due to low customer interest in shopping at multiple stores.

Bank remains optimistic that the No Name store concept will resonate with Canadian shoppers. He stated that the store is designed to cater to individuals who prioritize low prices, especially amid rising costs of living.

In the coming months, Bank expects to gather data on the viability of this store concept within a six-month timeframe. Loblaw aims to adapt based on feedback and results from this pilot program.