Loblaw Companies Ltd. announced Wednesday that it plans to close 22 unprofitable stores across a range of banners and formats by early 2018.
The announcement comes almost a month after the brand cut approximately 500 corporate and store-support positions.
The grocery retailer said it expects to take charges of approximately $135 million, the majority of which are expected in the fourth quarter of 2017, and to realize approximately $85 million in annualized savings.
Loblaw’s store banners include Loblaws, Zehrs, Provigo, Fortinos and Atlantic Superstore, as well as a lineup of discount chains, including No Frills, Extra Foods and Real Canadian Superstore. Loblaw’s also owns the Shoppers Drug Mart brand.
Last week, Loblaw announced plans to merge the Shoppers Optimum and PC Plus loyalty programs to create one program, PC Optimum, on Feb. 1, 2018.
Home delivery Coming to Toronto and Vancouver
Loblaw also announced it is partnering with U.S. based Instacart to deliver groceries from Loblaws, Real Canadian Superstore, and T&T locations to customers in Toronto beginning December 6 and in the Greater Vancouver Area starting in January 2018.
Instacart is a technology-driven, on-demand grocery delivery service, already serving more than 150 American markets.
The company said online grocery orders will be delivered by Instacart to customers’ homes in as little as one hour.
Loblaw plans to expand delivery to additional markets across Canada throughout 2018.
Image via Loblaw