'Everyone is looking for bargains’: New ultra-discount grocery store coming to Windsor soon

Loblaw has announced it is piloting a new ultra-discount grocery store with a location in Windsor, ready to capitalize on the company's already existing discount brand, known for its simplified, bright-yellow packaging and marketing.

The new store format promises to save shoppers up to 20 per cent on food and household necessities by featuring a significantly pared-down product selection, with no refrigerated foods like dairy or fresh meat.

“Our goal is simple; providing food and essential household items across a limited range of national brands and no name brand products at our lowest possible price,” said Per Bank, President and CEO of Loblaw.

“Since food inflation took off globally, we have been laser-focused on doing what we can to keep prices lower for customers, including opening more discount food locations in more parts of the country. This new test concept allows us to pass on lower prices to our customers. It’s a completely different and simplified shopping experience.”

The new location, found at the Windsor Crossing Premium Outlet, is among the first of three No Name stores that will open in September in Windsor, St. Catharines and Brockville.

“Our commitment to customers is that products at the No Name store will be up to 20 per cent less than the regular retail price on a comparable product at any of the four main discount grocers in that local area. These no name stores will have a limited selection of 1,300 products, but these are many of our top-selling pantry staples and household goods throughout the province, so we know they’re what customers buy most and what will bring them the biggest savings,” said Melanie Singh, President, Loblaw’s Hard Discount Division.

“This is a test and learn project, and we’re planning to listen and adjust quickly. The pilot is unchartered territory and while success isn't guaranteed, our commitment to creating value and meeting customer needs remains unwavering.”

According to a release, customers can expect a small range of frozen food items, complemented by pantry staples, household necessities, and shelf-stable bakery and produce items, including bread, bagels, apples, bananas, peppers, and carrots. This curated line up of products ensures every item on the shelves contribute to the store's mission of affordability and quality.

"I think it's a great idea to have something here," said Bryanna Boyd of Belle River. "It's really sad when you go to the grocery store and you see that something you would have thought two years ago could have been 50 cents, and now it's $2, and you can't get it on sale for anything less."

Boxes being loaded into the soon to be No Name store in Windsor, Ont. on Aug. 22, 2024. (Chris Campbell/CTV News Windsor)

Others like Diana Adams in Windsor said, "I think that's awesome because things are so expensive anymore. Just going to the grocery store, you're spending like $300 on maybe four or five bags. We need to get better deals on groceries."

Katherine Gallant believes things need to be more cohesive.

"I think it's good in a lot of ways, but it would be better if they actually used the same price across every organization that they have, rather than “well, you can shop here and get it at this price, but go all the way over here, its better price,” she said. “I find it a little ridiculous. But it will help people that need it."

Independent grocers, like Fred's Farm Fresh owner, Fred Bouzide, said the competition is welcome.

"It's hard to see the way the industry is going," Bouzide stated. "We need competition. I need it, and grocery stores need it. That is what helps. We are going to see what's going to happen with this company and they've opened so many chain stores and then closed them. Time will tell."

Dr. Sylvain Charlebois, professor and senior director of the Agri-Food Analytics Lab at Dalhousie University, told CTV News Windsor that he thinks Windsor is a good place to start the pilot stores.

"It seems as though people are looking forward to visiting some of these stores," Charlebois said.

"I was surprised that Loblaw intends to launch a new banner, given all the stores that Loblaw has already, and what I was surprised of was the fact that Loblaw is no longer afraid of cannibalizing itself. Most grocers are afraid to open new stores just because they don't want to steal sales from other stores they own in that area. But that doesn't seem to be the case for Loblaw."

Loblaw owns several brands, including SuperStore, Zehrs, Loblaw, Shopper's Drug Mart and No Frills.

"What I see is simply the number one grocer in the country going after Dollarama and Giant Tiger," Charlebois said.

"My guess is that Loblaw intends to follow a very aggressive strategy. So, they're not going to wait a year to see what's going to happen in Windsor, St Catharines or Brockville. I think they're actually going to be looking at this over a few months and see if they can deploy and expand this network further beyond just the three cities and see if they can open up new stores in other places in Ontario."

Charlebois continued, "there's actually tremendous opportunities in markets outside of Toronto, Montreal and Vancouver, to be honest, and that's really where inflation has been a problem. Everyone is looking for bargains. Everyone is no longer loyal to a store. And so that's why I think Loblaw is aggressively trying to get some shoppers back into their stores that are now at Dollarama and Giant Tiger looking for the best deal possible."

The new Windsor location is schedule to open on Sept. 5, 2024.

- With files from The Canadian Press and AM800 News