A new Food Basics grocery store is set to open in the ROQ City development in downtown Toronto, marking a significant step in addressing the area’s ongoing need for accessible and affordable grocery options. Located at the base of Tower B at 261 Queen Street East, the store will span approximately 33,000 square feet, offering value-priced food to a neighbourhood with rising population density and diverse demographics.
As Moss Park and surrounding areas continue to transform with new residential developments and an influx of residents, the arrival of Food Basics is being welcomed as a critical piece of urban infrastructure. The neighbourhood currently has limited grocery options, with the closest store — a No Frills — several blocks away on King Street East. With nearly 900 rental units set to open across two towers in ROQ City, the introduction of another grocery option is expected to enhance local livability while supporting food accessibility for a wide range of residents.
Part of Metro Inc.’s Broader Discount Expansion Strategy
Food Basics, which operates as a discount banner under Metro Inc., is in growth mode. The brand is actively expanding its footprint across Ontario in 2025, with parent company Metro announcing plans to open a dozen new discount grocery locations across Ontario and Quebec during the fiscal year. The emphasis on growing its discount format is a response to heightened consumer demand for affordable grocery options amid ongoing inflation and economic uncertainty.
The rise of discount grocery banners is also becoming increasingly visible in urban centres. A recent JLL report noted a significant shift in grocers’ focus toward value-driven retail, particularly in cities like Toronto, where cost-conscious consumers are actively seeking lower-price alternatives without compromising convenience. The expansion of Food Basics into the ROQ City site is a direct response to that growing demand.
ROQ City: Revitalizing a Key Corner of Downtown Toronto
The ROQ City development, spearheaded by Tricon Residential, is a transformative project for Toronto’s Moss Park neighbourhood. ROQ — named after the intersection of Richmond, Ontario, and Queen Streets — aims to create a dynamic, mixed-use community with residential, retail, and public components. The development, now under construction, will consist of two rental towers: a 33-storey South Tower and a 24-storey North Tower, with a combined total of 859 rental apartments.
Designed by Hariri Pontarini Architects alongside Graziani + Corazza Architects, and with heritage elements preserved by ERA Architects, the project incorporates 19th-century warehouse facades, maintaining the historical essence of the site while introducing modern infrastructure. Completion is expected by mid 2027.
The retail component will total about 75,000 square feet. Alongside Food Basics, the development will also house a Shoppers Drug Mart, a pharmacy retailer under Loblaw Companies Limited. Shoppers Drug Mart has leased approximately 12,522 square feet of space in the development, further enhancing the everyday retail offerings for residents and the broader community.
Accommodating Grocery Retail Needs Through Building Modifications
The inclusion of large-format retailers like Food Basics and Shoppers Drug Mart within the ROQ City development required design adjustments to the site’s retail loading facilities. Tricon Residential submitted a request to the City of Toronto to modify the approved loading dock configuration in Tower B, converting the space from a Type A to a Type B loading designation.
This change was necessary to meet the operational requirements of both retailers, which requested dedicated and more suitable loading arrangements. The minor variance allows the development to better serve these tenants while ensuring the functionality of the site’s logistics and deliveries without impacting other aspects of the project.
Demographic Evolution Driving Demand
The Moss Park and Garden District neighbourhoods, including the surrounding blocks of Queen Street East and Ontario Street, have experienced substantial change in recent years. Once characterized largely by supportive and low-income housing, the area is now undergoing a demographic evolution. New developments are bringing in higher-income residents, and the emerging mixed-income environment is creating increased demand for diverse retail options.
This shift underscores the importance of grocery options that can serve all income levels. Food Basics, with its focus on affordability, is seen as well-positioned to meet the needs of a broad customer base, from long-time residents to newcomers living in nearby high-rise buildings.
An Emerging Trend: Discount Grocers in Downtown Cores
Food Basics’ move into ROQ City highlights a growing trend in Canadian retail: the arrival of discount grocery stores in urban cores. Historically more common in suburban areas, discount banners like Food Basics and No Frills are now making a strategic push into central neighbourhoods. With affordability being a key concern for many Canadians, even in downtown areas, the presence of these stores reflects a shift in both consumer behaviour and retailer priorities.
Retail analysts suggest that this trend will continue, with grocers adapting to new realities in Canada’s urban centres. As inflation continues to impact household budgets, value-driven formats are expected to become increasingly essential parts of downtown commercial ecosystems.
