Canadian grocers are planning to expand in 2025, particularly in the discount sector, to attract price-conscious consumers, according to a new JLL report.

However, growth expectations remain measured due to consumer spending trends, Competition Act changes, and U.S. tariffs that took effect Tuesday.

Loblaw plans to continue expanding with Maxi in Quebec and No Frills in other provinces, while Empire plans to grow its FreshCo banner in Western Canada, JLL noted in the report. Metro is set to open a dozen new locations, primarily discount stores such as Super C in Quebec and Food Basics in Ontario. The grocers have already announced plans to do so.

Canada’s grocery landscape is evolving, with grocers expected to be more cautious with property controls as recent Competition Act changes limit exclusivity clauses in leases, according to JLL. This situation could open prime retail locations to new entrants.

Meanwhile, the U.S. tariffs on Canadian goods and Canada’s retaliatory measures, also launched Tuesday, may increase inflation and supply chain disruptions, further driving interest in Canadian-made products and near-shoring supply chains.

JLL advised that mergers and acquisitions are a key growth strategy as regional grocers look to expand their footprints and market share through strategic partnerships or acquisitions. Larger grocers benefit from increased buying power and operational efficiencies, helping them stay competitive in a shifting market, according to the commercial real estate service firm.