Loblaw to test ultra-discount No Name stores

Smaller shops to have fewer products, shorter operating hours, limited marketing and no flyers

- ROSA SABA

Loblaw is piloting a new ultra-discount grocery store in Ontario that promises to deliver even lower prices by stripping away even more frills.

The first three No Name stores will open in September in Windsor, St. Catharines and Brockville, capitalizing on Loblaw's existing discount brand known for its simplified, bright-yellow packaging and marketing.

"The No Name store is a completely different shopping experience," Loblaw president and CEO Per Bank said. "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."

It's the latest discount concept launched by the grocer, after opening smaller-format versions of its No Frills discount banner earlier this year.

Discount grocery stores have been driving sales growth for all of Canada's major grocers as shoppers hunt for deals to keep a lid on their grocery bills.