Canadian company Loblaw Companies Ltd. is testing a new concept based on values “No name” Store in three Ontario markets.
The No Name Store will operate as a pilot project in three Ontario markets starting in September 2024: Windsor, St. Catharines and Brockville.
“Our goal is simple: to offer you groceries and essential household items from a limited selection of national brands and no-name products at the lowest possible price.” said Loblaw President and CEO Per Bank in a statement. “Since food inflation has increased around the world, we have been focusing all our efforts on keeping prices low for our customers, including opening more discount grocery stores in more parts of the country. This new testing concept allows us to pass on lower prices to our customers – it‘A completely different and simplified shopping experience.”
According to Loblaw, store operating costs are reduced in several ways, including:
- Shorter opening hours (10am-7pm)
- A smaller range means the store is easier to run
- Limited marketing and no flyers
- No refrigeration (no dairy products or fresh meat products)
- Reused furnishings – shelves, checkout lines – to minimize construction costs
- Fewer weekly deliveries, lower logistics costs
In a press release, the retailer said products in the new stores will be 20% cheaper than the regular retail price for a comparable product at one of the region’s four largest discounters. The stores will also have a limited selection of 1,300 products.
Loblaw said shoppers can expect a small assortment of frozen foods, complemented by pantry staples, household goods, and shelf-stable baked goods and fruit and vegetable products such as bread, bagels, apples, bananas, peppers and carrots.
