Loblaw Closes Almost All Sans Nom Markets – What Happens Now?

Loblaw Closes Almost All Sans Nom Markets – What Happens Now?

Canada's food supply is facing a major upheaval: Loblaw, one of the country's largest retailers, has decided to close two of three supermarkets under its Sans Nom brand in Ontario. Only the Brockville store remains open, while the St. Catharines store closed in July and the LaSalle store will follow on October 25, Radio-Canada reports.

These measures come at a time when food prices and economic uncertainty are weighing heavily on many Canadians. In August, food inflation in the country recorded a year-on-year increase of 3.5%. According to a survey by Statistics Canada, one in four Canadians struggles with food insecurity. This development is impacting consumer purchasing habits, which are increasingly gravitating toward discount retailers such as No Frills, Food Basics, as well as large retailers such as Costco and Walmart.

The reasons for the closures

Mike Von Massow, a professor at the University of Guelph, highlights that store location was a key factor in the success of these stores. The simple product range of Sans Nom stores may also have played a role in the lack of takers. Customers are increasingly looking for more comprehensive offers - and not just because the prices are not significantly cheaper. These changes come against the backdrop of a changing shopping landscape, influenced by a pilot project from Loblaw that has provided important data.

Sylvain Charlebois, director of the Laboratory for Genetic Sciences in the Food Industry at Dalhousie University, calls the closures a “deliberate test.” Loblaw opens and closes about 50 stores a year and sees the closures as an opportunity to optimize its private label model. Charlebois believes there is potential for the concept in other regions of Canada, although he's not sure the sans nom store model will disappear entirely.

The impact on consumers

For low-income households, the closure of discount stores like Sans Nom means they have to adapt their shopping. A look at the statistics shows that the poverty rate in Canada and its connection to food insecurity are clear. For example, in the province of Ontario, approximately 33.4% of people live in poverty and are aggressively battling food insecurity. However, these numbers vary greatly across provinces: in Alberta, for example, 40.6% of the population is affected (according to Statistics Canada).

The closure of Sans Nom supermarkets is therefore not only a reflection of Loblaw's strategic decisions, but also reflects the growing challenges that many Canadians face in accessing food. The search for cheaper and more comprehensive shopping options will remain a central issue on the food market in the future.