Loblaw to Modernize its Stores, Expand its Network in 2023

By Adriano Marchese

Loblaw Cos. Ltd. plans to open dozens of new grocery stores and improve its existing network this year, which it said will pump money into the Canadian economy through new jobs and investments.

The Canadian grocery and pharmacy retailer said Friday that it will invest 2 billion Canadian dollars, about $1.5 billion, into the country's economy, which will come from the addition of 38 new or relocated stores as well as converting or renovating nearly 600 others.

These will include new discount-format supermarkets in underserved communities, an increase in pharmacist-led health clinics and advancing the development of a distribution center in Toronto, Ontario.

The news comes amid public criticism over Loblaw's record profits during a period of high inflation in the country. Food prices especially have gone up, rising 10.6% in February, which has squeezed Canadian pocketbooks as grocery bills continue to rise.

Loblaw, which is controlled by the George Weston Ltd., a holding company in turn controlled by the Weston family, said it will increase its investment levels to focus on its core retail experience. This will come in the form of expanding into more communities, modernizing its supply chain as well as making food and healthcare more accessible. Through these investments it said it expects to create more than 6,000 new jobs in retail, supply chain, technology and construction.

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

(END) Dow Jones Newswires

April 14, 2023 06:50 ET (10:50 GMT)

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