Loblaw to invest $1.2B in stores, create thousands of jobs this year

WATCH: Jamie Sturgeon explains how Loblaw’s investment will affect the Canadian economy.

Loblaw, the country’s largest food retailer and pharmacy chain, said Monday it plans to invest $1.2 billion this year expanding stores and building “dozens” of new locations among other initiatives.

“Loblaw’s investment is expected to create more than 20,000 jobs through store staffing and construction,” the company said in a statement.

Loblaw will be adding 50 new stores, it says, creating about 5,000 jobs spread between head-office and store level positions. Another 100 locations will undergo renovations which combined with new store openings will generate 15,000 positions in trade and construction work, Loblaw spokesperson Kevin Groh said.

WATCH: Grocery giant Loblaw has announced a $1.2-billion expansion that is expected to create more than 20,000 jobs, from construction to store staffing. Mike Le Couteur has the details.

Target departure

The announcement is being made as Loblaw competitor Target liquidates its 133 stores and prepares to exit Canada. While analysts believe Loblaw, alongside Walmart, will pick up some locations being vacated by the U.S.-based department store, Groh said Monday’s announcement didn’t include any current Target locations.

“We do have a team that’s looking at that separately,” Groh said.

MORE: In food fight, Canada’s discount grocers ate Target’s lunch

Loblaw has spent billions in recent years overhauling its back-end systems to create more efficient distribution capabilities among other improvements.

But executive chairman Galen Weston said Monday the food, pharmacy and retail giant plans to make investments this year “that Canadians can see with their own eyes.”

The investment, which represents a slight increase over Loblaw’s 2014 capital expenditures, comes as major rival Walmart continues to chip away at Canadian grocers. Walmart Canada announced last month plans to spend hundreds of millions this year expanding stores into Supercentres that carry food aisles.

MORE: Walmart gobbling up a bigger slice of Canadians’ grocery budgets

Loblaw operates several banners across the country, including its flagship Loblaws stores, No Frills, and Real Canadian Superstores among others. The grocer also acquired Shoppers Drug Mart in 2013.

Part of the 2015 investment plan will also be spent on its e-commerce offering, supply chain and IT infrastructure.

Groh said Lobaw will continue to expand the company’s “click and collect” e-commerce pilot program, where shoppers can order groceries online and get them delivered to their waiting vehicles at stores. The pilot is operating at six locations in the greater Toronto area.

Groh said the program was “showing promise.”