Loblaw could be launching a No Name grocery store near you.
The parent company of Loblaws, No Frills and The Real Canadian Superstore announced on Thursday that it will pilot a new concept of “value-based” No Name stores in three Canadian cities.
It’s based on Loblaw’s distinctive line of bright yellow generic brand products.
According to a news release, the discount store will help customers save up to 20% on everyday groceries and household essentials by lowering operating costs and carrying only a targeted assortment of products.
CNW Group/Loblaw Companies Limited – Public Relations
“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,” said Loblaw President and CEO Per Bank in a statement.
“This new test concept allows us to pass on lower prices to our customers – it’s a completely different and simplified shopping experience.”
The grocer says No Name stores will reduce operating costs through the following:
- Shorter operating hours (10 am to 7 pm)
- 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
Melanie Singh, president of Loblaw’s Hard Discount Division, says these stores will have a limited selection of 1,300 products.
“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,” she said in a statement.
She noted that this project is a test and they’ll be listening to feedback and adjusting quickly.
“The pilot is unchartered territory and while success isn’t guaranteed, our commitment to creating value and meeting customer needs remains unwavering,” said Singh.
In terms of what exactly you’ll be able to add to your shopping cart, Loblaw says customers can expect the following:
- Small range of frozen food items
- Pantry staples
- Household necessities
- Shelf-stable bakery and produce items (bread, bagels, apples, bananas, peppers, and carrots)
The No Name stores will first be piloted in Ontario cities Windsor, St. Catharines, and Brockville beginning in September.
This pilot comes after thousands of Canadians boycotted Loblaw in May over skyrocketing grocery prices.