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Loblaw Companies Ltd. has announced LaSalle will be home to one of the three sites it plans to test a new value-based, no name store concept in Ontario.
The company will open the local outlet, along with stores in St. Catharines and Brockville, in September.
Loblaw said the no name stores will help customers save up to 20 per cent on everyday groceries and household items through savings in operating costs and carrying reduced assortment of products.
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“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 Loblaw CEO/President Per Bank.
“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 grocery industry has faced criticism since the onset of the COVID-19 pandemic for inflated prices. Consumers and politicians have pressured the grocers to address prices that have increased by about 20 per cent.
The new Loblaws concept is the latest move by the company, which has increased its investments in its No Frills discount stores. Its competitors, Sobey’s and Metro, are also seeing growth in their respective discount brands FreshCo and Food Basics.
The major grocers are also seeing increased competition from the discount chains Dollarama and The Dollar Store as consumers look for savings elsewhere.
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Loblaws plans to build on its well-known yellow no name store concept with a strategy to reduce its operating costs by targeting savings in the stores’ building and operating costs and simplifying those outlets.
Among the differences consumers will notice are shorter operating hours (10 a.m.-7 p.m.), fewer assortment of products, limited marketing and no flyers, no refrigeration meaning no dairy or fresh meat products, reused fixtures (shelves, cash lanes) to reduce building costs and reduced delivery options.
The stores will carry frozen food items, pantry staples, household items 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 per cent less than the regular retail price on a comparable product at any of the four main discount grocers in that local area,” said Melanie Singh, President, Loblaw’s Hard Discount Division.
“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.
“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.”
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