Loblaw to Add Discount Stores as Food Costs Continues to Shape Canadian Shopping Habits — Update

By Adriano Marchese

Loblaw plans to build more than two dozen new grocery stores under its discount banners in 2026, tapping into Canadians' growing shift toward value-focused shopping as household budgets remain under pressure.

The Canadian grocer has laid out its 2.4 billion Canadian dollar ($1.75 billion) investment plan for the year includes building 31 new stores under its discount banners, Maxi and No Frill, while also renovating nearly 200 existing locations this year.

Loblaw is tapping into the steady shift of Canadian shoppers gravitating toward discount grocers and private-label goods. Grocery prices have risen faster than any other major spending category, according to a TD Cowen report, and are up more than 30% since 2019. Had prepandemic trends held, TD Cowen estimates that increase would be closer to 17%.

The investment plan also includes 34 new Shoppers Drug Mart and Pharmaprix pharmacies and care clinics, the company said Monday.

Ontario and Quebec are the provinces set to see the biggest expansion, with 27 and 15 new stores, respectively, while Loblaw plans to add 24 locations in Western Canada and four more in Eastern Canada.

The investment is part of Loblaw's broader five-year plan to spend C$10 billion by 2030, which includes continuing the construction of its large automated distribution center in Caledon, Ontario.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 23, 2026 12:00 ET (17:00 GMT)