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Loblaws to Close 22 Stores, Launch Home Delivery in Toronto and Vancouver

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Loblaws is taking big steps to compete in an e-commerce world.

On Wednesday, Canada’s largest supermarket chain said it is launching home delivery of groceries in Toronto and Vancouver. In addition, the announcement also detailed that Loblaws will be shutting down 22 unprofitable stores as it tries to adapt to a rapidly shifting consumer landscape.

Loblaw is teaming up with the U.S. delivery technology startup Instacart to begin fresh food and other grocery shipments to customers beginning Dec. 6 in Toronto, and early next year in Vancouver. The service is set to expand to other cities later in 2018.

The grocery giant said it’ll be launching its delivery service with purchases available through Instacart’s website and app starting at $3.99 with a 7.5 percent service fee on orders.

The store closings and other efforts are aimed at helping Loblaws find ways to shave expenses and gear up for multiple financial pressures that retailers will feel in 2018, including rising consumer demand for e-commerce, higher minimum wages in Ontario and Alberta.

Delivery will be offered across Toronto and the GTA, including areas from downtown to Scarborough, North York, East York, Richmond Hill-Markham, and Mississauga. Details of delivery in Vancouver have not yet been announced.

[via The Star]

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  • Ari

    Congrats on destroying jobs Alberta and Ontario. I guess BC is next on the chopping block. Raising the minimum wage results in job losses and automation. Just look at those stupid order kiosks at McDonald’s and A&W. The NDP and Liberals do not actually care about jobs.

  • My 1/2 cents

    We have Loblaws, Real Canadian Superstore, Independent Grocers, No Frills on BC which are all different named grocery stores that should follow only one naming conventional. Speak of Loblaws is nothing short of ambiguity and a major source of confusion.

    I fail to see the logic with many different names. Unfortunately this seems to be fairly common in the grocery industry though. Do we all remember a few years ago how Overwaitea was going through some serious identity issues changing the names of most of their stores from Save On to Price Mart and back again to Save On.

    Just imagine how much cost was involved with just changing the signs from one to another and back again? Who do you think paid for these changes? It was you and me. These grocers are gouging us big time.

  • iverge

    Total greed. Billions in profits are not enough.

  • Bill___A

    A 7.5 percent service fee? Think that’s going to work? I’d be surprised if it did. That’s a lot to add. And actually I hope it doesn’t work, I certainly don’t want to see a service which adds that much to the cost.

  • Geoffrey Spencer

    The delivery charges should be FREE after $50 or so. I was excited about this service until I saw the service fee nonsense. No thank you. Wait for Walmart and Amazon’s Whole Foods.

  • Geoffrey Spencer

    I love the order kiosks at McD and now I can order with their apps. Starbucks is doing this too. Love it. No kid messing up my order at the cash.

  • Si2k78

    Sounds like a good strategy. The price point gives them room to reduce the fees in the future, or introduce a subscription service akin to amazon prime. Nothing is ever truly free.

  • Jeagerjaques Doo (???)

    I was thinking my salary gonna goes up, now I am losing my job ?

  • DP

    Online good idea. 7.5% service fee – bad idea.

  • Dehop

    Minimum wage as the main cause of job loss and automation is a total red herring and you know it. Automation was already happening, the ones at McD’s and A&W were in the works years ago.

    McDonald’s now has kiosks in Texas and Oklahoma… I’m sure their out-of-control liberal legislatures raising minimum wages are the cause of automation-induced job losses there ?

  • xeronine992

    Now you just have to worry about the kid preparing your order.

    Ordered 3 iced coffees this past summer (all the same, just x3). Two had sugar added and the third didn’t.

  • Brenda

    Too late to Montreal where Metro and IGA are already online and doing deliveries. I used to shop at the Real Canadian Superstore in Vancouver, or maybe it was in Burnaby, because it was near a Skytrain station. I liked their organic selection and prices on some things were in line with Costco. It’s not so easy to shop in Loblaws/Provigo in Montreal where you have to walk across an ice-covered parking lot in winter. They have few organic products. I’m going to continue to walk to my local market and when I need something delivered will buy from Amazon, Metro or IGA.

  • Brenda

    I like seeing the owner’s name. I know who to complain to.

  • Brenda

    You can already buy non-perishables, including Whole Foods 365 products,
    from Amazon. If you’re an Amazon Prime member, why wouldn’t you?

  • Bill___A

    Funny thing is my mother used to have a service like this in the 1960’s and although it wasn’t a discount store, the prices were the same. She would call on the phone, they’d take down her order and it would be delivered in the afternoon.

  • Okay but you need to order before midnight whereas with Instacart, they deliver within an hour.

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