Loblaw Companies (TSX: L) is attempting to step onto the “Team Canada” train this morning, announcing that it will be investing $2.2 billion this year in a move that is claimed to reinforce Loblaw’s role as “a major contributor to the growth of the Canadian economy.”
The investment is part of a planned $10 billion in capital expenditures from now through to 2030 as the company works to keep its retail storefronts fresh.
The $2.2 billion in capital expenditures earmarked for this year will see 80 new stores opened across its multiple brands, including No Frills, Maxi, Shoppers Drug Mart, Pharmaprix and T&T. Of those 80 new locations, 50 are slated to be hard discount stores, suggesting the company expects a weak economy over the coming years.
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Renovations are also set to occur at more than 300 grocery and pharmacy locations across Loblaw’s storefronts, which is said to include 100 new Shoppers Drug mart pharmacy care clinics. Funds will also be placed into developing supply chains, with a new 1.2 million square foot facility to open in East Gwillimbury in Ontario.
Loblaw last traded at $179.08 on the TSX.
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