Loblaw to Open More Canadian Stores in C$1.2 Billion Growth Push

By Robb M. Stewart

Canadian retailer Loblaw aims to invest roughly 1.2 billion Canadian dollars (US$866 million) over the remainder of the year rolling out more stores and improving its network.

The company said Tuesday it plans to accelerate the opening of new grocery stores and pharmacies, renovate existing locations, and also continue to develop new store formats and concepts.

The capital investment is part of a target of spending C$2.4 billion in 2026, with half of that already spent.

Loblaw said it now expects to open about 75 new locations this year, compared with a prior target at the beginning of the year to open about 70. The decision to ramp up openings reflects a strong customer response to new locations and confidence in the formats where the company is investing, Loblaw said.

The push comes as Canada's economy has shown signs of recovering after being slugged by the shift in U.S. trade policy and tariffs, including a job market that has picked up in recent months. Still, food inflation has remained elevated and business uncertainty lingers over trade and geopolitical concerns.

"Canadians are being thoughtful about every dollar they spend. We see that in how they shop our stores, the brands they choose, and how they use our loyalty and ecommerce solutions," President and Chief Executive Per Bank said.

The investment plans for the full year are expected to create about 9,700 retail and construction jobs in 2026. This is the second in Loblaw's five-year plan to invest C$10 billion in capital in Canada by 2030.

Loblaw said it has opened 38 new grocery stores and pharmacies in the country so far this year. Bank said the company is happy with the performance of the new sites, and as they mature they are seeing double-digit comparable same-store sales growth.

The company's expansion is focused mainly on its No Frills and Maxi banners as consumers turn to discount stores to help manage household budgets.

Loblaw said it is also using new stores to test different concepts and operating models. A No Frills store in Ontario combines the banner's focus on low prices with a refreshed design and expanded fresh and prepared-food offerings, while another store in the province introduced a smaller rural format with a curated 4,000-product range designed to provide a full-value grocery shop more efficiently in smaller communities, the company said.

Outside of Canada, Loblaw said it continues to expand banners with growth potential. In June, the company's T&T Supermarket opened its first California location in San Jose, and two additional California locations are planned in 2026, alongside continued growth of T&T stores in Washington state.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

September 01, 2026 07:42 ET (11:42 GMT)