Canadian grocers are prioritizing discount banner growth for 2025, with Toronto seeing a wave of new value-focused store openings that directly reflect national trends identified in JLL’s recently released Grocery Report, industry analysts say.
The comprehensive market analysis reveals discount formats now represent the primary growth vehicle for major Canadian food retailers as consumers increasingly seek budget-friendly options amid persistent inflation concerns.
“Canadian grocers are looking to grow in 2025, particularly in the discount space to reach more price-conscious households,” the report states, noting retailers are proceeding with measured expectations due to “consumer spending moderation, changes to the Competition Act, and potential U.S. tariffs.”
This strategic industry shift is already transforming Toronto’s grocery landscape, with Loblaw Companies Inc. aggressively expanding its No Frills banner throughout the downtown core and surrounding neighbourhoods.
The latest No Frills location will open March 20th at 883 College Street in space formerly designated for upscale grocer Pusateri’s. Store operator PJ’s No Frills confirmed on social media they are “ready to serve the community of Little Italy and Little Portugal” from the prominent College Street address.
Loblaw has announced plans for approximately 40 additional discount banner stores, with several targeting key Toronto locations. These include a forthcoming No Frills replacing the full-service Loblaws at 720 Broadview Avenue, and a newly confirmed location on Shuter Street.
Recent No Frills openings include stores at 75 The Esplanade, at Richmond and John Streets in the former Linen Chest space and in Liberty Village, where the King West Independent City Market converted to the discount format earlier this spring. Another No Frills “city concept” store opened last summer in Liberty Village, replacing competitor Organic Garage.
The JLL report indicates the discount expansion extends beyond Loblaw’s portfolio. Metro plans to open approximately a dozen new locations this year, with its Food Basics discount format comprising the majority of these openings.
Consumer behaviour is driving this market transformation, according to JLL analysts, who report private label products have gained significant market share, rising to 20.7% in 2024, up 1.6 percentage points since 2021. The report attributes this growth to consumers “substituting nationally recognized brands for less expensive alternatives” as grocery prices remain elevated compared to pre-pandemic levels.
While discount expansion dominates, Toronto’s grocery sector is seeing growth across multiple segments. T&T Supermarket, also owned by Loblaw Companies, opened its second downtown Toronto location near Yonge and Dundas on February 13th. The 31,000-square-foot specialty Asian grocer has been a welcome addition to the neighbourhood, with significant traffic throughout the weekday and weekends.
Smaller operators are also entering Toronto’s urban core. BestCo Fresh Foods, with existing locations in Scarborough, Etobicoke, and Ajax, has confirmed two downtown stores: one at Adelaide and Peter streets in a new 47-storey condominium tower, and another at the high-profile Mirvish Village development at Bloor and Bathurst. The specialty grocer focuses on multicultural offerings with an emphasis on Asian products.
Toronto’s evolving grocery landscape faces additional challenges identified in the JLL report. Recent Competition Act amendments limit exclusivity clauses in retail leases, potentially creating opportunities for “new entrants that were previously off-limits due to exclusivity agreements” to secure prime locations.
U.S.-Canada tariff tensions remain a significant industry concern. The JLL report specifically identifies these as a “downside risk” that “will drive inflation and supply chain disruptions,” leading to increased focus on Canadian sourcing.
Toronto Grocery Openings Tracker
Recent Openings:
- No Frills at 75 The Esplanade
- No Frills in Liberty Village (converted from King West Independent City Market)
- No Frills “city concept” store in Liberty Village (replaced Organic Garage)
- T&T Supermarket near Yonge and Dundas (opened February 13, 2025)
- No Frills at Richmond and John Streets (in former Linen Chest space)
Upcoming Openings:
- No Frills at 883 College Street (opening March 20, 2025)
- No Frills at 720 Broadview Avenue (replacing full-service Loblaws)
- No Frills on Shuter Street
- BestCo Fresh Foods at Adelaide and Peter streets (350 Adelaide Street West)
- BestCo Fresh Foods at Mirvish Village development (Bloor and Bathurst)
- Dollarama at 98 The Esplanade
- Metro planning approximately a dozen new locations (majority being Food Basics format)
The discount food trend extends beyond traditional grocers into adjacent retail categories. Dollarama continues expanding its Toronto footprint with a new location planned at 98 The Esplanade, according to CBRE, adding to the area’s value retail options. The chain has gradually increased its shelf-stable food and household essentials selection, capturing a portion of the grocery market.
As Toronto’s grocery sector continues evolving, consumers across the city will benefit from expanded discount options and increased retailer diversity, with particular impact in previously underserved downtown neighborhoods.
Dustin Fuhs is the Editor-in-Chief of 6ix Retail. He is the former Editor-in-Chief of Retail Insider, Canada’s most-read retail trade publication. He has over 20 years of experience in the retail, marketing, entertainment and hospitality industries, including with The Walt Disney Company, The Hockey Hall of Fame, Starbucks and Blockbuster.
Dustin was named as a RETHINK Retail Top Retail Expert in 2024 and 2025.