In a massive show of economic power, Loblaw Cos. Ltd. is dedicating an astronomical sum of over $2 billion to their expansion, with intentions to erect over 40 new stores and breathe new life into several hundred additional locations.
Announced on Tuesday, this historic investment plan entails not only the expansion and relocation of 10 stores, but also renovations at 700 existing locations spanning its various banners.
In a press release, Per Bank, CEO of Loblaw, stated, "Our mission is to bring over 40 new discount stores and 140 pharmacy care clinics to communities all across Canada, making access to affordable food and healthcare more attainable for all."
With a vast network of 2,500 stores already established in the country, Loblaw Cos. plans to continue their steady growth. When questioned about the specific locations of the new stores, Loblaw spokesperson Catherine Thomas responded to the Canadian Press via email, "We will be opening in various communities, however, we are not able to provide further details at this time."
Additionally, no list has been provided for which stores will undergo expansion or renovation. However, the overall focus will be on introducing more discount stores and ramping up the addition of pharmacy care clinics.
Aside from bolstering the country's economy, the investments made in this year alone will generate over 7,500 job opportunities, encompassing both in-store and construction roles.
As Mr. Bank commented, "These investments not only benefit Canada as a whole, but also provide a catalyst for job growth and countless opportunities within our stores, company, and with our valued partners."
Loblaw has been facing mounting pressure from both Canadians and lawmakers to assist the country in dealing with the burden of inflation. According to Statistics Canada, inflation rose to 2.9% in January, but was at 3.4% in December.
Among the various sectors affected by inflation, food prices have been particularly challenging. In January, it decreased to an annual rate of 3.4%, down from 4.7% in December.
Politicians have been calling on the major supermarket chains, including Loblaw, to stabilize prices, as grocers continue to report significant profits despite ongoing food inflation.
Last autumn, the Liberal government summoned the executives of grocery companies to present their plans to address the issue. In response, Loblaw launched their "Hit of the Month" program, which offers monthly sales on select products.
Efforts have also been made to establish a grocery code of conduct, which would regulate fair practices in negotiations between suppliers and grocers. However, this code, drafted by the industry, has yet to be implemented because both Loblaw and Walmart have refused to sign it. They fear that it will only lead to even higher prices.
Recently, the House of Commons committee investigating food prices warned Loblaw and Walmart that their failure to sign the code may result in its principles being legislated.
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