Maxi Store Openings to Reach Record High This Year
Maxi, Quebec’s discount grocery chain, will see a record 34 new stores open across the province by the end of 2024, La Presse reported.
Maxi’s total locations will reach 187 by year’s end, a significant increase from 115 in 2015, further positioning parent firm Loblaw toward the discount market as demand rises according to the report.
But Maxi is thinking small as it expands in a big way.
Many of the new locations are in unexpected locations such as small neighbourhoods and downtown areas. While Maxi’s traditional concept is tied to large stores with extensive parking, several new locations—like those in the Greater Montreal Area’s Rosemont and Griffintown communities and at the corner of Papineau and Sainte-Catherine streets in the city’s core—are designed without parking spaces to better suit high-density urban areas.
“These small stores are in densely populated areas,” Patrick Blanchette, a Maxi vice- president, told La Presse. “People are used to doing their grocery shopping on foot, coming every day.”
Maxi’s shift towards smaller spaces is influenced by Per Bank, CEO of Loblaw, who has considerable experience managing small stores in Europe. Loblaw CFO Richard Dufresne told La Presse that finding larger spaces downtown is challenging, but the smaller format—around 10,000 square feet to 12,000 sf —offers a viable alternative.
The smaller stores offer a streamlined selection with about 7,000 items, half of what a full-size Maxi carries, but maintain fresh produce and essentials.
“What we did was reduce the grocery section,” Dufresne explained to La Presse, noting that centre-aisle items like cereals and canned goods have fewer varieties. However, he emphasized that a reduced size does not compromise on essentials, with the smaller footprint making it easier to shop quickly.
Maxi’s expansion includes converting existing Provigo stores to the discount banner, a strategy that has proven successful with increased sales, especially as consumers prioritize lower prices, according to the company.
While 65 Provigo stores have already transitioned to Maxi, Loblaw will keep the remaining 20 Provigo stores, updating them instead of erasing the brand.
The Maxi store openings and conversions are part of a $2-billion Loblaw investment that has aimed to open 40 Maxi and No Frills stores altogether and upgrade approximately 700 existing locations sporting various brands across Canada this year.
Photo: BalkansCat/Shutterstock