Loblaws No Name discount stores show focus on cash-strapped Canadians [Video]

Just four months after announcing it would test out smaller-format No Frills stores, Loblaw says it will be piloting ultra-discount stores under its No Name brand in Ontario, but retail analysts are mixed on how successful it will be.

According to Loblaw, the stores will be less complicated to run because they will rely on reused fixtures such as shelves and cash lanes to reduce costs, while also having shorter operating hours, limited marketing and no flyers.

“Running a traditional grocery store can be expensive, but by reducing our building and operating costs, as well as the overall complexity of the store, we do believe that we can deliver meaningful savings,” Per Bank, Loblaw CEO and president, told The Canadian Press.

Prices will be up to 20 per cent cheaper than comparable items at nearby discount stores, with about two-thirds being below $5. Just under 60 per cent will be No Name or President’s …