Loblaw Pilots 'No Name' Ultra-Discount Stores in Canada

Loblaw Companies Ltd., Canada's biggest grocery chain, is trying something new to help you save money. A new ultra-discount store concept called "No Name," based on Loblaw’s low-cost brand, opened in LaSalle, Ontario. Two more stores are coming soon in St. Catharines and Brockville.

Per Bank, President and CEO of Loblaw, explained the idea: "Our goal is simple – providing food and essential household items across a limited range of national brands and No Name brand products at our lowest possible price."

“No Name” aims to cut prices by up to 20% on everyday groceries and household essentials, with Loblaw significantly reducing operating costs and offering a limited selection of goods to achieve these price cuts.

“No Names” have shorter operating hours (10 a.m. to 7 p.m.). They also utilize reused shelves and cash registers and have no refrigerators (therefore, no fresh meat or dairy). Other cost-cutting measures include fewer weekly deliveries and no flyers. The most important part is a limited (only 1,300 items) product line: frozen foods, pantry basics, household items, and some shelf-stable bakery.

Melanie Singh, President of Loblaw's hard discount division, stated on a limited selection of products, "We know they're what customers buy most and what will bring them the biggest savings.”

Loblaw is treating this as a test. They’ll run “No Names” for about six months before deciding whether to open more or close them. Singh admits: “This is uncharted territory. Success isn’t guaranteed.”

However, if successful, Loblaw hopes “No Name” will become the new “big name” store for consumers in Canada.