Empire Company’s latest growth plan is a clear sign of where Canadian grocery shopping is headed: more discount formats, more price comparisons and more pressure on full-service supermarkets to prove their value. Canadian Grocer reported that the Sobeys parent plans to open 70 new grocery stores over the next three years, with 20 already in the works for fiscal 2027. About 75% of the new locations are expected to be discount supermarkets, and the company pointed to continued momentum in discount as shoppers remain stretched. For households, the useful takeaway is not that one banner will always win. It is that more discount square footage can change the weekly shop by giving families another place to test their staples basket against the flyer, store brands and loyalty offers they already use.
The timing matters because grocery inflation is still running hotter than the all-items number many shoppers see in headlines. Statistics Canada’s April Consumer Price Index release put overall inflation at 2.8% year over year, while food purchased from stores was up 3.8%. Transportation was up 7.6%, and gasoline prices were a major reason the headline CPI accelerated. That combination is exactly why a new discount store is only helpful if it fits the route. A shopper who saves a few dollars on pantry items but burns extra fuel or time may not actually come out ahead. The practical move is to compare the same 10 to 15 repeat purchases: milk or dairy substitute, eggs, bread, rice or pasta, fresh fruit, frozen vegetables, chicken or lentils, coffee, detergent and one lunchbox item.
Empire’s discount push also shows that big grocers are trying to meet shoppers where they have already moved. Canadian Grocer said FreshCo is currently in Ontario, Alberta, British Columbia, Manitoba and Saskatchewan, and that Empire is bringing the banner to Atlantic Canada with one conversion and two new Nova Scotia store openings planned in 2026. Grocery Business also reported this spring that FreshCo opened two stores in one day, including a western Canadian location in Chestermere, Alberta, as part of its discount expansion strategy. That matters for regional shoppers because discount competition is uneven in Canada. A neighbourhood with a No Frills, Walmart, Giant Tiger, FreshCo or independent discount grocer has a different price-check routine than a town where the main options are a full-service supermarket and a long drive.
More discount stores do not automatically mean every item is cheaper. Discount banners often shine on private label staples, basic produce, frozen foods, canned goods and advertised weekly features. Full-service stores can still win on butcher counter specials, bakery markdowns, pharmacy convenience, loyalty redemptions, rain checks, prepared foods or one-stop trips for households with limited time. The best shopping habit is to split the basket by role: use discount stores for predictable pantry and freezer items, use full-service stores for targeted promotions or quality-sensitive items, and keep one flexible meal in the plan so a genuine flyer deal can replace a more expensive protein. If a new FreshCo-style store opens nearby, give it a four-week test rather than judging it from one grand-opening shop.
There is another shopper angle in Empire’s comments: price increase requests. Canadian Grocer quoted Empire leadership saying the company received fewer price increase requests in the fourth quarter than last year and was pushing back on fuel-related surcharges while protecting customer value. Shoppers cannot see supplier negotiations directly, but they can watch the shelf-level signals. If coffee, beef, tomatoes, olive oil or paper goods jump at one store but not another, write the price down and compare the unit cost before assuming the increase is universal. Unit pricing is especially important at discount stores because package sizes can differ. A lower ticket price on a smaller box may be worse than a sale price on a larger format elsewhere.
For Canadian-made and local products, the discount shift is worth watching carefully. A tighter grocery budget can push shoppers toward the lowest shelf price, but it can also create openings for Canadian processors that can offer reliable value in dairy, frozen vegetables, oats, pulses, sauces, bread, household paper and cleaning products. The smart compromise is to pick a few categories where buying Canadian matters most to your household and compare those items consistently. If the Canadian option is close in price, keep it in the basket. If the gap is large, look for a different format, a sale cycle or a pantry swap instead of turning the weekly shop into a guilt trip.
The bottom line: Empire’s 70-store plan is a retail story, but it is also a household budget signal. Canadian shoppers should expect grocers to compete harder for the value basket through 2026 and beyond, especially in communities that gain new discount locations. The winning routine is simple: build a repeat basket, compare unit prices, include travel costs, watch private label quality, and use loyalty points only when they beat the cash price somewhere else. A new discount store is not a magic fix for food inflation, but it can be a useful tool if you make it compete for the items you buy every week.
Source trail: - Canadian Grocer — “Empire to open 70 new grocery stores over next three years”: https://canadiangrocer.com/empire-open-70-new-grocery-stores-over-next-three-years - Statistics Canada, The Daily — “Consumer Price Index, April 2026”: https://www150.statcan.gc.ca/n1/daily-quotidien/260519/dq260519a-eng.htm - Grocery Business Magazine — “On a roll: Empire Company opens two FreshCo stores in one day”: https://www.grocerybusiness.ca/on-a-roll-empire-company-opens-two-freshco-stores-in-one-day/