Canada outpaced the United States in adding per capita grocery retail space last year. JLL Retail’s recently released North American Grocery Report shows Canada’s major food retailing chains collectively expanded into 68 new locations in 2023, while their U.S. counterparts opened 253 new stores in a country with more than eight times as many residents.
In Canada, Loblaw opened the largest share of new stores, with 25 new Maxi outlets and seven new No Frills venues. Both are in the discount segment of Loblaw’s multi-brand portfolio and JLL analysts suggest the 2023 additions are reflective of the parent company’s increasing focus in this area. That includes a phased switch-out of full-service Provigo stores with Maxi replacements across Quebec.
Metro also augmented its discount brands last year, opening four new Super C locations and two new Food Basics stores, while Canada’s third major player, Empire, added six additional FreshCo stores. However, JLL analysts suggest Empire is now more strategically focused on its existing full-service lineup.
“Companies have witnessed strong performance from their discount banners and products, leading to increased same-store sales, footfall, loyalty membership, and market share,” they observe. “On the other hand, Empire believes that focusing on full-service stores will position it favorably in the future. By maintaining its full-service approach, Empire is banking on a period of decreasing inflation and interest rates, when customers might prioritize the shopping experience over steep discounts.”
Ontario-based M+M Food Market was most prominent among the handful of smaller players that expanded their portfolios last year. The frozen meals specialist opened 11 new stores, while Vancouver-based Asian food specialist, T&T Supermarket, opened four new locations.
In the U.S., Aldi led the expansion, opening 109 new stores representing nearly 2.5 million square feet of additional retail space. Publix, the next most active player, opened a smaller number (38) of a larger venues, collectively comprising nearly 1.9 million square feet of retail space.
