Loblaw Report: Canadians Are Still 'Trading Down' on Groceries to Save Money

What this means for you: Even though grocery prices are rising more slowly than before, your budget isn't stretching as far as it used to. Canadians are officially changing how they shop to survive, switching from name brands to store brands and skipping expensive meats for cheaper options.

Loblaw Companies Limited has released its earnings report for the first quarter of 2026. The numbers show that while the company is making more money, Canadian shoppers are still under heavy financial pressure.

Here is the breakdown of what is happening in the aisles and how it affects your wallet.

The Numbers Behind the Shift

Loblaw’s revenue grew by 4.2% in the first quarter of 2026, reaching a total of $14.48 billion. However, CEO Per Bank says the way customers spend that money has fundamentally changed.

Canadians are no longer just looking for sales; they are changing what they buy. This behavior is called "trading down."

Protein Swap: Shoppers are buying less premium steak and "free-from" chicken. Instead, they are choosing minced beef (ground beef) and other cheaper cuts to save money.
Discount Growth: There is a massive shift toward discount stores. Loblaw saw significant growth at banners like No Frills and Maxi.
Private Label: Store-brand products (like President's Choice or No Name) are selling much faster than expensive national brands.

Who is Affected?

This trend affects almost everyone, but specifically:

Budget-conscious families: Households that are strictly monitoring their weekly food spending.
Shoppers in underserved areas: Loblaw plans to open approximately 30 new discount locations in 2026. They are specifically targeting areas that currently lack cheap options, such as Vancouver Island and Sudbury.
Brand loyalists: If you usually buy premium brands, you are likely feeling the pinch more than those who have already switched to generic alternatives.

What You Should Do

If you are feeling the squeeze, you are not alone. Here are actionable steps to manage your budget based on these market trends:

Switch to Private Labels: Try swapping one national brand item for a generic store brand (like No Name or Irresistibles) on your next shop. The quality is often comparable, but the price is significantly lower.
Shop at Discount Banners: If you have a No Frills, Maxi, or FreshCo nearby, consider doing your main shop there. The business model is built around lower prices.
Change Your Protein: Meat is often the most expensive part of a meal. Follow the trend of "trading down" by buying cheaper cuts, using minced beef, or incorporating plant-based proteins a few nights a week.
Watch for Flyers: Loblaw noted that customers rely heavily on promotional pricing. Check weekly flyers digitally before you leave the house to ensure you are buying items on sale.

Bottom Line

Canadians are still facing a cost-of-living crisis. Even though Loblaw’s internal food inflation is lower than the national CPI (4.4%), prices remain high. The continued rush to discount stores and cheaper food proves that household budgets are still tight. To save money, focus on discount banners and private label products.