Ontario Construction News staff writer
Loblaw Companies Ltd. has unveiled a $2.4-billion capital investment plan for 2026, marking the second phase of a massive $10-billion strategic commitment to expand its Canadian retail and logistics footprint by the end of the decade.
The Brampton-based grocery and pharmacy giant announced Monday that the 2026 program includes the construction of 70 new stores and the renovation of 191 existing locations. The company estimates the investment will create approximately 9,700 jobs across the retail and construction sectors.
A primary pillar of the 2026 strategy is the continued expansion of the company’s “hard discount” network to address consumer affordability concerns. Of the 70 new builds:
- 31 locations will be No Frills and Maxi discount grocery stores.
- 34 locations will be Shoppers Drug Mart and Pharmaprix pharmacies, featuring integrated care clinics to expand community healthcare access.
- The remaining five locations will consist of other banners within the Loblaw portfolio, such as T&T Supermarket.
The plan also involves converting a number of existing full-service stores into discount banners, reflecting a broader industry shift toward lower-cost grocery options.
The expansion is distributed nationally, with Ontario receiving the largest share of new projects:
- Ontario: 27 new stores and 3,775 anticipated jobs.
- Western Canada: 24 new stores and 3,400 jobs.
- Quebec: 15 new stores and 1,985 jobs.
- Atlantic Canada: 4 new stores and 600 jobs.
Beyond storefronts, a significant portion of the $2.4-billion outlay is earmarked for modernizing the company’s supply chain. Construction will continue on a roughly 1.2-million-sq. ft. automated distribution centre in Caledon, Ont.
The facility is part of a multi-year push toward high-tech logistics that includes two new automated distribution centres in Southern Ontario. These infrastructure projects are intended to increase operational efficiency and support the company’s growing e-commerce and AI-driven digital commerce initiatives.
Loblaw currently operates a network of approximately 2,500 stores across Canada, with 90 per cent of the population living within 10 kilometres of a company-owned location. The retailer is scheduled to report its full 2025 fiscal year financial results on Wednesday.
