Metro has unveiled plans to open 12 new discount grocery stores in 2025, including several locations converted from full-priced brands.

The expansion comes as Canadian grocers are more outlets under discount banners amid growing public and government scrutiny of inflation and challenges to food affordability.

Montreal-based Metro operates discount grocery chains Super C in Quebec and Food Basics in Ontario.

“We see good opportunities, in discount mostly, in both provinces,” said Eric La Flèche, Metro’s president and CEO, during a conference call to discuss the company’s fourth-quarter earnings. “Food Basics in Ontario is doing really well, has been on a very good run for a few years, capturing share. And, we see more opportunities. Same with Super C.”

The retailer’s announcement comes as competition in the discount grocery market intensifies. As the Globe and Mail noted, Rival Loblaw has been expanding its own lower-cost offerings by opening new stores and converting several Provigo locations in Quebec into Maxi discount outlets.

According to La Flèche, customer counts have increased across all Metro banners, and the company has gained market share. However, he noted that a persistent shift in shopping habits is occurring as consumers increasingly opt for store-brand products and prioritize promotions.