Loblaw testing out small-format No Frills grocery stores

Loblaw is testing smaller-format discount stores across the country this year as shoppers increasingly look for ways to save on their grocery bill.

Melanie Singh, president of Loblaw’s hard discount division, says the company had a handful of smaller discount stores already, but plans to "lean in" to the strategy as a way of reaching more customers.

The first store in this year's rollout opened on Thursday, taking over the space of a former City Market in downtown Toronto.

The store is about 10,000 square feet, one-third of the size of the average No Frills store.

Singh says these smaller stores will cater to the local neighbourhood; for example, the Toronto store has grab-and-go options like fresh-baked pastries, which many discount stores don’t have.

This move comes as shoppers have been increasingly gravitating toward discount stores and private-label brands to try and mitigate the effects of food inflation.

This report by The Canadian Press was first published May 31, 2024.

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Rosa Saba, The Canadian Press