Canadian grocery giant Loblaw Companies (L) is spending $2 billion to expand and renovate its store network, an investment that is expected to create 6,000 jobs nationwide.
The company said in a news release that the increased investment will include new discount supermarkets, health clinics, and a distribution centre in the Greater Toronto Area (GTA).
In all, Loblaw plans to open 38 new stores and renovate nearly 600 locations.
The investments in Loblaw’s store network will be funded through the sale of real estate assets, as the grocer has more than $1.8 billion in excess real estate.
Loblaw currently employs 220,000 people across Canada and said the increased investments will create more than 6,000 new jobs in retail, supply chain, technology and construction.
The new stores will be across the company’s varied brands that include No Frills, Maxi, T&T, Independent, City Market and Shoppers Drug Mart.
The bulk of the renovations will be at Ontario store locations. Loblaw plans to open 14 new stores in Canada’s most populous province.
Loblaw’s investment comes as it faces scrutiny over increases in profitability amid soaring food inflation. The company has said that it is not profiting excessively from higher food prices.
Loblaw’s stock has increased 10% in the past 12 months to trade at $126.16 per share.