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BRAMPTON, Ontario — Loblaw Cos. on Tuesday unveiled details of a capital spending plan for 2016 that calls for building about 50 stores, renovating 150 stores, expanding and updating its e-commerce capabilities, bolstering its supply chain and upgrading its information technology infrastructure.
The company, Canada’s largest supermarket and pharmacy operator, said it has allocated about $1 billion for the projects, with additional investment to come from Choice Properties Real Estate Investment Trust, an owner of commercial properties across Canada. Choice Properties’ largest tenant is Loblaw, which operates a nationwide retail network under such banners as Loblaws, Shoppers Drug Mart, SaveEasy, Fortinos, Joe Fresh, No Frills, Provigo and Zehr’s.
“We continue to invest in our business in ways that matter for the Canadian economy and the millions of Canadians who shop with us each week,” commented Galen Weston, executive chairman and president of Loblaw. “Our investment will create local jobs and bring nutrition and wellness solutions closer to home.”
The improvements are coming as Loblaw moves to protect its competitive position through price cuts. Canada’s tepid economic recovery has more shoppers flocking to discount outlets. And rival Sobeys Inc., Canada’s No. 2 grocery chain, announced last week it was slashing prices on 8,500 grocery items.
