Loblaw Companies Ltd. (TSX: L), also known as “Loblaw,” declared that it would be testing a value-based no-name store model in three markets in Ontario. The no-name store will help consumers save up to 20% on necessities for the home and groceries by reducing operational costs and stocking only a carefully chosen selection of goods.
Per Bank, President and CEO of Loblaw, stated, “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.”
Since food inflation began to spread around the world, we have concentrated all of our efforts on keeping costs lower for consumers, even if it means expanding the number of cheap food stores across the nation. We are able to offer our consumers reduced costs because to this new test concept, which also makes for a much simpler and unique shopping experience.
The no-name retailers are cutting their operational expenses in a number of ways, such as:
- Shortened hours of operation (10 am–7 pm)
- A smaller selection implies less work for the store to manage.
- No fliers and little marketing
- No fresh meat or dairy products should be refrigerated.
- Reused fittings, such as cash lanes and shelving, to reduce construction costs
- Fewer weekly deliveries, which lowers the cost of logistics
Customers can expect to pay up to 20% less for comparable products at the No Name Store than at any of the four major discount grocers in the area. This is our promise to them. Melanie Singh, President of Loblaw’s Hard Discount Division, stated, “These no-name stores will have a limited selection of 1,300 products, but these are many of our top-selling household goods and pantry staples throughout the province, so we know they’re what customers buy most and what will bring them the biggest savings.” We intend to listen and make quick adjustments because this is a test and learn initiative. Although the pilot is in uncharted area and success is uncertain, we are nevertheless committed to providing value and satisfying consumer demands.
A limited selection of frozen foods will be available for customers, along with pantry essentials, home necessities, and shelf-stable bakery and produce items like bread, bagels, apples, bananas, peppers, and carrots. The carefully chosen selection of goods guarantees that each item on the shelf advances the store’s objective of providing high-quality, reasonably priced goods.
