Just a year after

Loblaw Cos. Ltd.

launched

“no-name” stores

that promised customers up to 20 per cent

savings on groceries

, the retailer has shut down two of the three stores it piloted.

The grocer said it will close its “no-name” store in Windsor, Ont. on Oct. 25 and open a No Frills store nearby on Oct. 30. The first “no-name” store to close was in St. Catharines in July.

While the decision to close the Windsor store was “difficult, Loblaw said the location

failed to build the customer base

needed to keep it sustainable over the long-term, despite a strong initial response.

Of the three no-name stores piloted in September 2024, only one remains in Brockville, Ont.

When Loblaw announced the pilot in Aug. 22, 2024, it called the new concept “value-based” and said it would

save on costs

through some operational tweaks from its other banners. This included no refrigeration at stores, thus no dairy or fresh meat products, as well as a smaller assortment of goods.

The stores had a limited selection of 1,300 products, including a small range of frozen foods, household necessities and shelf-stable produce such as bread, bagels and apples.

The company said the stores would help customers save about 20 per cent off the regular retail prices at other discount grocers.

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At the time of their launch, Loblaw said the “pilot was unchartered territory” and “success isn’t guaranteed.”

• Email: dpaglinawan@postmedia.com