Canadian food and pharmacy retailer Loblaw Companies has unveiled plans to pilot a new no-name store concept in three markets in Ontario.
The pilot, set to begin in September 2024, will see the no-name stores open in Windsor, St. Catharines and Brockville.
The store is designed to provide customers with savings on grocery and household essentials.
This will be achieved by reducing operating costs and offering a targeted product assortment.
Cost-saving measures at the no-name stores include shorter operating hours, a smaller product range, limited marketing and fewer weekly deliveries to cut logistic costs.
The stores will repurpose existing fixtures and operate without refrigeration, stocking no dairy products or fresh meat.
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By GlobalDataEach store will offer a selection of frozen foods, pantry staples, shelf-stable bakery and produce such as apples, carrots and bagels as well as household necessities.
Loblaw hard discount division president Melanie Singh said: “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.
“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.”
In May 2024, Loblaw achieved an 11% reduction in carbon emissions relative to its 2020 baseline.