Loblaws' new No Name stores in Ontario are already getting bad reviews
Loblaws has just launched an all-new No Name-branded grocery store chain in Ontario, and so far, some of its first customers aren't fans.
In an effort to win public favour, the supermarket giant — which has been condemned and boycotted for its high prices and the hundreds of millions it earns in quarterly profits — has been trying to put more focus on its value brands, moving some of its existing stores under its cheaper No Frills banner during a recent expansion.
Also part of that expansion is the renovation of some 700 locations (which the company is making suppliers pay for, in part) and dozens of new ones, which include novel concepts like a smaller-format No Frills for urban areas, and this completely new retailer for No Name products.
Hmmm... So they can give lower prices, IF they wanted to.
— Steve Martin (@CdnSteveMartin) August 22, 2024
The first of these No Name outlets, which were announced only two weeks ago and are being piloted only in Ontario, just opened its doors on Thursday in Windsor. And one person who has visited thus far already has very strong opinions on what a farce it is.
"The verdict is, don't waste your time. From a consumer perspective, is it worth the drive to these stores? My answer is no," one patron wrote of the banner, which is supposed to be able to offer savings of "up to 20 per cent" on grocery staples and household essentials due to its lower operating costs.
"There is an average of one per cent to 19 per cent difference on various things, but it's the bottom of the barrel things... from my initial walk though it looks like a place where COVID overstock goes to die when they told suppliers to ramp up production."
No Name stores is just a No Frills Box Store-Review
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Comments on the review, which was shared to Reddit on the store's opening day, include one wondering why Loblaws would "waste money on entirely new stores when they have No Frills," if not just as a PR stunt.
"They don't want their no name brands next to regular brands so you won't realize that you're not really saving much," one person suggested. "It really feels like all the company can conjure up is gimmicks, not true answers to complaints," another said.
There is the point to be made that the review could be considered moot given that the new chain is meant to be the lowest end of Loblaws' stores. But, as one person surmised, the whole concept seems very strategic.
"I think this is a lower tier so No Frills [becomes] mid-tier, so when people say 'why are all there prices so expensive even at No Frills,' they can be like 'but look at our budget-friendly stores,'" they wrote.
"Agreed though, they should just lower prices — razor thin margins can't be too bad if they can open up new stores and make them even cheaper than existing ones."
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The other No Name test stores are set to debut sometime this month in St. Catharines and Brockville.
Loblaws execs have said they're taking a "'test and learn' approach in all three locations to see how customers react and if we can deliver the right mix of value and experience to keep them coming back."
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