In a major move to solidify its position as Canada's dominant food and pharmacy retailer, Loblaw Companies Limited has announced an investment of $2.4 billion for 2026. This capital expenditure is the second phase of a massive $10 billion, five-year strategic plan designed to modernize the retailer's physical footprint and supply chain capabilities. The 2026 initiative includes the opening of 70 new locations and the renovation of 191 existing stores across various provinces.
The expansion comes at a critical time for Canadian retail, as consumer behavior shifts toward value-oriented shopping and integrated healthcare services. By doubling down on its discount and pharmacy banners, Loblaw aims to capture rising demand while simultaneously bolstering the national economy through the creation of approximately 9,700 retail and construction jobs.
Strategic Focus on Discount Banners and Healthcare
A primary driver of the 2026 expansion is the growth of Loblaw’s "hard discount" segment. Of the 70 planned new stores, 31 will operate under the No Frills and Maxi banners. This move directly addresses the "affordability crisis" facing many Canadian households, where shoppers are increasingly gravitating toward private-label goods and lower-priced retail formats.
Simultaneously, Loblaw is expanding its healthcare reach with 34 new Shoppers Drug Mart and Pharmaprix locations, many of which will feature integrated care clinics. "We see this as a significant investment in our network and capabilities as one of Canada's largest retailers, but it is also an investment in the people we serve and their ability to access great value and quality healthcare," stated Per Bank, President and CEO of Loblaw Companies Limited.
Modernizing the Supply Chain and Distribution
Beyond the storefront, a significant portion of the $2.4 billion investment is earmarked for supply chain infrastructure. The company is continuing construction on its 1.2 million-square-foot automated distribution center in Caledon, Ontario. This facility is a cornerstone of Loblaw’s omnichannel strategy, designed to enhance fulfillment speed and operational efficiency for both in-store and e-commerce channels.
Regional investment breakdown for 2026:
- Ontario: 27 new stores and 3,775 jobs, including support for two new automated distribution centers.
- Western Canada: 24 new stores and over 3,400 positions.
- Quebec: 15 new stores and more than 1,985 jobs.
- Eastern Canada: 4 new stores and 600+ roles.
This modernization effort is essential as Loblaw faces increased competition from global players like Walmart and domestic rivals such as Metro and Empire, who are also aggressively expanding their discount footprints and automated fulfillment capabilities.
Driving Value in an Omnichannel Environment
As Loblaw expands its physical presence, the retailer remains focused on its digital ecosystem. The company has reported steady growth in its PC Optimum loyalty program—now boasting over 16 million active members—and its PC Express e-commerce platform. By renovating 191 existing stores, Loblaw is ensuring that its legacy locations are equipped to handle the complexities of modern omnichannel retail, including dedicated pickup zones and improved digital integration on the sales floor.
The scale of this investment reinforces the "Live Life Well" purpose of the organization, aiming to make quality food and essential health services accessible to 90% of Canadians who already live within 10 kilometers of a Loblaw-owned store. As the company prepares to report its full 2025 financial results, the 2026 roadmap signals a confident outlook for sustained growth in the North American retail sector.
More about supply chain:
Staff Report
Staff Report
Staff Report
