TORONTO, CANADA - Loblaw Companies is testing out a new store format in Canada. The retailer opened a test location just yesterday in Toronto, consisting of a smaller store footprint with discount groceries as its focus. The store was converted from City Market, another banner under the Loblaw umbrella.

“We're able to offer an entire shop within the space of 10,000 square feet in a pocket of downtown Toronto that we don't have a hard discount presence in,” said Melanie Singh, who leads Loblaw’s discount division that includes No Frills and Maxi, in an interview at the grand opening of the first store in the rollout. “So, we’re super proud of that.”

Though the company already has some smaller discount stores in its portfolio, Coast Reporter states that Loblaw is pressing the gas on its strategy. There are even more stores with this format planned to open between now and Thanksgiving.

The strategy comes at a time when discount retail formats are growing in popularity amidst continued inflation. We have yet to see whether Loblaw will make a larger shift toward the format.

Time and ANUK will tell, so stick with us!