Loblaw Plans $1.2 Billion Investment to Expand Grocery and Pharmacy Network
News provided byLoblaw Companies Limited · 3 min read
BRAMPTON, Ontario, Sept. 01, 2026 /CourierPR/ -- Loblaw Companies Limited has announced plans to invest approximately $1.2 billion in capital expenditures through the remainder of 2026, aiming to expand and enhance its grocery and pharmacy network across Canada. This investment is part of a broader strategy to meet customer needs and lower prices for more Canadians.
The company, which had previously announced a full-year capital expenditure plan of $2.4 billion for 2026, has accelerated its expansion plans. With about half of the initial investment already deployed, Loblaw now expects to open approximately 75 new locations in 2026, up from the original 70 planned at the start of the year. The increase reflects strong customer response to Loblaw’s new locations and confidence in the success of its formats.
Per Bank, President and CEO of Loblaw Companies Limited, stated, "Canadians are being thoughtful about every dollar they spend. We see that in how they shop our stores, the brands they choose, and how they use our loyalty and ecommerce solutions. We have a significant investment program underway, and we’re putting that capital behind the parts of our business that meet the needs of Canadians."
The capital investment will create approximately 9,700 retail and construction jobs in 2026. This is the second in Loblaw’s five-year plan to invest $10 billion in capital in Canada by 2030.
Loblaw's grocery expansion is focusing on its No Frills and Maxi banners, as more Canadians opt for hard discount formats to manage their household budgets. The company is also using new stores to test different concepts and operating models. A new-look No Frills store in Komoka, Ontario, combines the banner’s focus on low prices with a refreshed design and expanded fresh and prepared-food offerings. In Dutton, Ontario, a smaller rural format with a curated 4,000-product assortment is being introduced to provide a full-value grocery shop more efficiently in smaller communities.
The company is also investing in existing stores, with renovations to more than 190 locations. These investments range from refreshed food and fresh offerings to improvements on the right-hand side of the store. Additionally, Loblaw is expanding convenient access to healthcare by opening new pharmacies and improving existing stores and expanding pharmacy and healthcare services.
Loblaw’s 2026 capital program includes investments in formats that customers are choosing, as evidenced by the increase in the share of grocery sales purchased on promotion by four percentage points since 2022, and a 18% growth in No Name promotional sales. Ecommerce sales increased nearly 20% year over year in the second quarter.
Beyond its Canadian investment program, Loblaw continues to expand banners with significant growth potential. In June, T&T Supermarket opened its first California location in San Jose, generating the highest first-week sales of any store opening in Loblaw history. Two additional California locations are planned for 2026, alongside T&T’s continued growth in Washington state.
Bank added, "Expanding our network, improving existing stores and pharmacies, and testing new formats that can deliver greater value, convenience, and access to care is a key part of our strategy. We are committed to meeting and exceeding the needs of Canadians in many ways, including convenient locations, a wide range of grocery store formats, and a diverse range of health and beauty products."
Loblaw, a leader in Canada’s food and pharmacy sector, employs more than 220,000 full- and part-time employees across more than 2,800 locations. Its purpose is to help Canadians Live Life Well® through a comprehensive range of products and services.