> ## Content Index > Fetch the complete content index at: https://www.thecanadareport.ca/llms.txt > Use this file to discover other available public pages before exploring further. # Loblaw Invests $1.2B in Discount Grocery Expansion Across Canada - URL: https://www.thecanadareport.ca/loblaw-discount-grocery-expansion/ - Published: 2026-09-02T20:27:27.000Z - Updated: 2026-09-02T21:10:19.000Z - Description: Loblaw will invest $1.2 billion in Canadian discount grocery stores, renovations and pharmacy locations through 2026. - Author: Steve Cogbill - Tags: Daily News, Ontario | Sourced from 5 independent sources · no points in dispute | | --------------------------------------------------------- | Retail Insider, Supermarket News, RENX, RTTNews, and MarketWatch Every key fact in this report is confirmed by more than one independent source. 9 key facts · 9 corroborated · none disputed This summary is compiled from the independent sources listed above. Canadians’ search for value is moving from the checkout lane into Loblaw’s building plans. Loblaw Companies Limited plans to spend about C$1.2 billion through the rest of 2026 to expand and improve its grocery and pharmacy network. The spending represents the remaining half of its C$2.4-billion capital program for the year, and it is increasingly aimed at the discount formats customers are choosing. ## Discount Stores Drive Expansion Loblaw now expects to open about 75 new locations in 2026, up from about 70 planned at the start of the year. The company raised that target after newer stores delivered strong double-digit same-store sales growth. This expansion follows Loblaw's earlier commitment of [$2.4B to open 70 new stores](https://www.thecanadareport.ca/loblaw-invests-2-4b-canada/) across Canada, reflecting a broader trend in the grocery sector towards discount formats. “We’re very happy with how our new stores are performing,” Loblaw president and CEO Per Bank said. “As they mature, we’re seeing strong double-digit same-store sales growth. That gives us confidence in our expansion strategy and in continuing to invest behind the formats customers are choosing.” So far this year, Loblaw has opened 38 new grocery and pharmacy locations, including 21 grocery stores and 17 Shoppers Drug Mart locations. Its grocery expansion is focused mainly on the No Frills and Maxi hard-discount banners. That choice says a great deal about where Loblaw sees Canadian grocery shopping heading. The company says value-seeking behaviour is shaping its strategy, pointing to a four-percentage-point increase since 2022 in the share of grocery sales bought on promotion, along with an 18 per cent rise in No Name promotional sales. “Canadians are being thoughtful about every dollar they spend,” Bank said. “We see that in how they shop our stores, the brands they choose, and how they use our loyalty and ecommerce solutions.” ## New Formats In Ontario Loblaw is not just adding more stores. It is also testing what future discount grocery locations might look like. The company is trying new Ontario store concepts under the No Frills banner. One refreshed format includes expanded fresh and prepared foods, pairing the chain’s low-price positioning with a broader food offer. Another smaller rural format uses a curated 4,000-product assortment, aimed at providing a full grocery shop in a more compact model. Those tests point to two different growth paths: a more updated discount store with a larger fresh and prepared-food presence, and a smaller format designed for rural markets. Both keep the focus on value, which Loblaw says is central to how customers are shopping. The company’s emphasis on No Frills and Maxi suggests Loblaw expects hard-discount grocery to remain a major part of its network plans through 2026. ## Renovations Across Existing Stores New locations are only part of the capital program. Loblaw plans renovations for about 190 existing locations in 2026. Those renovations are part of the same broader push to improve stores while opening new ones. The company has said the investment will support additional openings, upgrades and continued testing of store concepts across its grocery and pharmacy network. The full 2026 capital program is expected to create about 9,700 retail and construction jobs. It also forms part of Loblaw’s five-year plan to invest C$10 billion by 2030. ## Pharmacy Network Also Expands Loblaw’s spending is not limited to grocery aisles. The company is also investing in Shoppers Drug Mart and Pharmaprix by opening new pharmacies, improving existing stores and refreshing beauty, front-store and food offerings. That pharmacy investment sits alongside the grocery expansion, giving Loblaw two major areas of focus for the rest of 2026: more discount food retail, and a renewed pharmacy network. For shoppers, the most visible changes may be new No Frills and Maxi stores, more promotional focus and updated Shoppers Drug Mart and Pharmaprix locations. For Loblaw, the bet is that Canadians’ value habits are not a temporary blip, but a force strong enough to guide billions in capital spending. **Reader-funded. No ads. No paywall.** The Canada Report is independent, reader-funded Canadian news — no advertisers, nothing behind a paywall, kept free for everyone. If you value it, you can help keep it that way. [Support The Canada Report →](https://www.thecanadareport.ca/support/) --- [*Source 1*](https://retail-insider.com/retail-insider/2026/09/loblaw-plans-more-no-frills-and-maxi-stores-in-1-2b-expansion/?ref=thecanadareport.ca) *|* [*Source 2*](https://www.supermarketnews.com/company-news/loblaw-invests-in-its-lower-price-stores?ref=thecanadareport.ca) *|* [*Source 3*](https://renx.ca/loblaw-outlines-12b-plan-for-new-stores-renos-in-h2?ref=thecanadareport.ca) *|* [*Source 4*](https://www.rttnews.com/3687564/loblaw-to-invest-1-2-bln-in-canadian-expansion-open-more-stores.aspx?type=corp&ref=thecanadareport.ca) *|* [*Source 5*](https://www.marketwatch.com/story/loblaw-to-open-more-canadian-stores-in-c-1-2-billion-growth-push-7b4ad704?ref=thecanadareport.ca) ## Sign up for The Canada Report Your modern digest of Canadian news. Friendly, clear, and in your inbox. Subscribe Email sent! Check your inbox to complete your signup. No spam. 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