Quebecers’ scramble for discounts during this time of inflation is driving Ontario giant Loblaw to convert Provigo stores into Maxis. Eleven grocery stores have already been redesigned since April 2021, with at least 16 more to follow in the coming months.
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“Sometimes it’s because the demographics have changed or a different vendor has come into the market. There are several reasons for this,” says Johanne Héroux, Senior Manager, Corporate Affairs and Communications at Loblaw, about store conversions.
There are currently 70 Provigo stores in Quebec compared to 127 Maxi stores. With Loblaw expecting to build three new Maxis in 2023, the year ends at 54 for Provigo and 146 for Maxi.
The next conversions will take place in Quebec, Rivière-du-Loup, Dolbeau-Mistassini and La Malbaie, among others.
While the majority of Provigo stores are owned by franchisees, all of the Maxis corporate stores are under Loblaw’s direct control.
That means nearly 27 Provigo owners have become or will soon become employees of the chain in Ontario.
“Almost all franchisees have decided to continue the adventure at Maxi as a store manager. They have been treated well and are delighted with Maxi’s new offer and its new positioning,” assures Ms. Héroux.
Because the Maxi brand, which has been in Quebec since the late 1990s, was known for its unpleasant shopping experience and limited product selection, this is no longer the case, according to the spokesman.
“It’s the smart choice, with low quality prices, freshness, variety and a more sophisticated, modern and warm decor compared to the original Maxi,” she declines.
The Provigo brand, specifically the new concept currently operating in Kirkland and L’Île-des-Sœurs, will have a more upscale focus with an offering of “restaurant quality and more niche products”.
Loblaw “hurts” Provigo
According to retail specialist Jacques Nantel, Loblaw has “caused a lot of damage” to the Provigo brand since purchasing it in 1998.
The Provigo brand, which disappeared in 1998 in favor of Loblaw, reappeared in 2010. It was then overtaken by an industry leader by Metro and IGA, as evidenced by the many store closures.
“They are still having great difficulty with this banner. They have one that works, Maxi, and one that doesn’t, Provigo. They turn what doesn’t work into what works,” he claims.
From more than 160 Provigo stores in Quebec at the turn of the 2000s, only a hundred remain.
Loblaw has three options with these stores, says Mr. Nantel: “We close them, we reposition them like in Kirkland and L’Île-des-Sœurs, or we convert them.”
Another strategy at Metro
The strategy is different on the Metro side, whose boss Eric La Flèche said yesterday that the discounters are “here to stay”.
The chain isn’t remodeling stores. It has 187 Metro stores compared to 101 Super C stores. Two new Super C stores will open by the end of 2023.
The big players in the industry are adapting to inflation
STATE OF EXISTING FORCES
- Maximum: 127 shops
- Provigo: 70 shops
- SuperC: 101 stores
- Subway : 187 shops
- 16 | Number of Provigo stores to convert to Maxi in 2023, in addition to the construction of three new Maxi stores
- 2 | Number of Super C branches to be built in 2023
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