Canadian grocery store chain Loblaw Companies (L) has announced plans to invest $10 billion over the next five years, including $2.2 billion in 2025.
The Toronto-based company said it plans to open 80 new grocery and pharmacy stores this year, about 50 of which will be discount grocery outlets.
Additionally, Loblaw plans to renovate more than 300 grocery and pharmacy stores throughout the year ahead.
The company’s investment plans also include modernizing its supply chain, including the opening of a new Ontario distribution centre that has been under construction since 2022.
Loblaw has been shifting towards discount shopping over the past few years as Canadians look for ways to manage inflation and higher interest rates.
Inflation sent grocery prices soaring after the pandemic, and consumers responded by seeking more sales and choosing discount banners such as No Frills, FreshCo, and Food Basics.
Loblaw said in a news release that, since 2020, it has spent more than $8 billion on improving and expanding its store network across Canada as well as modernizing its supply chain.
Loblaw said the planned renovations of its stores will include adding about 100 new pharmacy care clinics to its Shoppers Drug Mart locations.
The company has been expanding its network of clinics that provide assessment and treatment of certain common ailments.
The stock of Loblaw Companies has risen 29% over the past 12 months to trade at $179.46 on the Toronto Stock Exchange.
