Grocery giant Loblaw (L-T) announced today it plans to invest roughly $1.2 billion in capital expenditure in its retail network through the end of 2026.

The country's largest retailer provided an update to an announcement made in February that it would invest $2.4 billion in 2026 and open 70 stores.

Loblaw said it now intends to open 75 new locations this year and has opened 38 new stores to date – 21 grocery stores and 17 Shoppers Drug Mart locations. The company said it will be accelerating openings in the second half of the year.

"The increase reflects strong customer response to Loblaw’s new locations and confidence in the formats where the company is investing," Loblaw said in this morning's announcement.

Its 2026 capital program also includes renovations to 190 existing locations. It is part of its five-year plan to invest $10 billion across its network and supply chain by 2030. 

Focus on hard discount formats

The expansion to the grocery network has been focused on what Loblaw calls its "hard discount" formats – stores operating under the No Frills and Maxi banners – and enhancing consumer value through its No Name product lines.

“Canadians are being thoughtful about every dollar they spend," president and CEO Per Bank said in the press release.

"We see that in how they shop our stores, the brands they choose, and how they use our loyalty and e-commerce solutions.

“We have a significant investment program underway, and we’re putting that capital behind the parts of our business that meets the needs of Canadians."

No Name promotional sales have grown 18 per cent since 2022, the company said, while sales of items purchased on promotion increased four percentage points. And e-commerce sales increased nearly 20 per cent in Q2, year-over-year.

New retail formats are being tested in smaller markets, Loblaw said, highlighting two examples:

• In Komoka, Ont. a new-look No Frills store combines the banner’s focus on low prices with a refreshed design and expanded fresh and prepared-food offering.
• In Dutton, Ont., Loblaw introduced a smaller rural format with a curated 4,000-product assortment designed to provide a full-value grocery shop more efficiently in smaller communities.

Bolstering pharmacy offerings

The company is also investing in its Shoppers Drug Mart and Pharmaprix network by opening new locations, improving existing stores and expanding pharmacy and healthcare services.

Pharmacies are being redesigned with refreshed beauty areas and a realignments of food offerings intended to enhance convenience, value and availability of multicultural products.

To date this year, 17 pharmacy locations have completed the food realignment strategy and 43 are expected to by the end of the year.

Loblaw claims the $2.4-billion investment program will create 9,700 retail and construction jobs this year.

The press release also highlighted the expansion to the United States of the T&T Supermarket banner, which opened its first California location in San Jose in June, generating the highest first-week sales of any store opening in the company's history.

Two additional California locations are planned in 2026, alongside T&T’s continued growth in Washington state.

T&T Supermarket is the largest Asian supermarket chain in Canada, now operating over 38 stores across Canada and the U.S.

Originally launched in Vancouver in 1993, T&T was acquired by Loblaw in 2009.

“We’re very happy with how our new stores are performing,” Bank said. “As they mature, we’re seeing strong double-digit same-store sales growth. That gives us confidence in our expansion strategy and in continuing to invest behind the formats customers are choosing.”

With more than 2,800 locations, Loblaw is Canada's leading retailer. Its franchisees and associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada’s largest private sector employers.