Loblaw Companies Ltd. has been laying out its 2026 capital expenditure and expansion plans this week, at the same time as it reported modest results in the fourth quarter.

On Wednesday, the company  released its financial results for the quarter ended Jan. 3, saying customer visits and traffic increased during the period, along with e-commerce sales, which were up nearly 20 per cent.

It reported 3.5 per cent growth in total revenues to $15.47 billion, compared to $14.9 billion for the same period the year prior. Its

adjusted EBITDA was $1.78 billion, with a gross margin of 11.5 per cent — a 4.8 per cent increase from adjusted EBITDA in 2024.

The retailer’s adjusted net earnings were $719 million in the fourth quarter, up 7.5 per cent. This amounts to adjusted diluted net earnings per share (EPS) of $0.61, up 10.9 per cent from $0.55 the previous year.

Chief executive Per Bank said the earnings growth came while the company increased spending, in the form of opening and ramping up operations at two one-million-square-foot DCS distribution centres, as well as launching 77 new food and drug retail stores across its banners.

Loblaw opened 48 additional hard discount stores in 2025, including 15 new No Frills and Maxi stores in the fourth quarter alone.

“We know that affordability is so important for many households, and that’s why we expanded our hard discount network,” Bank told analysts during Wednesday’s earnings call. “We have seen Canadians prioritize value.”

On top of those grocery store openings, the company also added 27 new Shoppers Drug Mart pharmacies and 97 new pharmacy care clinics in the year. It also opened two new T&T Asian supermarkets, including a second location in the United States, with a third expected to launch this year.

Earlier this week, Loblaw announced its plans for further expansion in 2026, opening approximately 70 new food and drug stores, renovating 191 existing locations and continuing construction of its automated distribution network.

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