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Loblaw Winds Down No Name Ultra-Discount Pilot in Ontario as Two of Three Stores Close

Analysts see Loblaw refining the low-price format to compete with big-box rivals.

Overview

  • Loblaw confirmed the St. Catharines pilot store closed in July, LaSalle will shut on Oct. 25, and Brockville remains open under review.
  • The bare-bones concept cut SKUs, refrigeration, deliveries and hours to lower costs, targeting prices up to 20% below competitors.
  • The company did not share detailed lessons from the test, stating only that the LaSalle site failed to build a customer base sustainable long term.
  • University of Guelph professor Mike von Massow said the outcome points to market or brand fit issues rather than a failed concept.
  • The trial began during a grocer boycott and higher food costs, with some shoppers praising prices but questioning car-centric locations.