By Adriano Marchese


Loblaw is planning to invest 2 billion Canadian dollars ($1.48 billion) this year to upgrade the company's store network, and which it says will have positive benefits to the Canadian economy.

The Canadian food and pharmacy retail giant said on Tuesday the investment reflects its commitment to enhancing its store network which will have ripple effects in creating over 7,500 jobs in the country, improving accessibility to food and healthcare.

As part of the plans, Loblaw intends to build more than 40 new discount stores and 140 new pharmacy care clinics in communities across the country. It also plans to expand or relocate another 10 stores while 700 stores are slated for renovations.

Canadians shoppers have been struggling with stubbornly high food inflation, and 2024 looks to continue the trend of rising food prices. Shoppers can expect food to rise between 2.5% and 4.5%, according to a study by Canada's Food Price Report 2024.

Companies such as Loblaw, which dominate the retail food industry in Canada, have received much of the backlash for the increase in costs as they generate record profits while Canadians pay more for their food bills.

In its third quarter reported in November, profits rose by nearly 12% thanks to stronger-than-expected revenue, in large part driven by shoppers looking for value and discounts.

"These investments in Canada are a catalyst for job growth and the creation of countless opportunities, in our stores, in our company and with the many partners who work with us," Chief Executive Per Bank said on Tuesday.

Loblaw is expected to release its fourth quarter earnings on Feb. 22.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

02-20-24 0653ET