Mr. Per Bank reports

LOBLAW TO INVEST APPROXIMATELY $1.2 BILLION IN CAPITAL EXPENDITURES THROUGH REMAINDER OF 2026, OPENING MORE HARD DISCOUNT STORES TO HELP LOWER PRICES FOR MORE CANADIANS

Loblaw Companies Ltd. expects to invest approximately $1.2-billion in capital expenditures through the remainder of 2026 as it continues to expand and improve its grocery and pharmacy network in response to customer needs.

The company had previously announced plans to invest $2.4-billion in capital expenditures on a full year basis in 2026. With approximately half of that investment now deployed, the company's remaining plans include accelerating the opening of new grocery stores and pharmacies, renovating existing locations, and continuing to develop new store formats and concepts.

The company now expects to open approximately 75 new locations in 2026, compared with approximately 70 planned at the beginning of the year. The increase reflects strong customer response to Loblaw's new locations and confidence in the formats where the company is investing.

The broader $2.4-billion capital investment program is expected to create approximately 9,700 retail and construction jobs in 2026. This is the second in Loblaw's five-year plan to invest $10-billion in capital in Canada by 2030.

"Canadians are being thoughtful about every dollar they spend. We see that in how they shop our stores, the brands they choose, and how they use our loyalty and e-commerce solutions," said Per Bank, president and chief executive officer, Loblaw Companies. "We have a significant investment program under way, and we're putting that capital behind the parts of our business that meets the needs of Canadians. That includes accelerating our network expansion efforts to reach more customers, faster."

Building on strong first-half progress

To date in 2026, Loblaw has opened 38 new grocery stores and pharmacies in Canada -- 21 grocery stores and 17 Shoppers Drug Mart locations -- with dozens more planned through the remainder of the year.

"We're very happy with how our new stores are performing," said Mr. Bank. "As they mature, we're seeing strong double-digit same-store sales growth. That gives us confidence in our expansion strategy and in continuing to invest behind the formats customers are choosing."

Investing in formats customers are choosing

Loblaw's grocery expansion is focused predominantly on its No Frills and Maxi banners, as more Canadians choose hard discount formats to help manage their household budgets. The company is also using new stores to test different concepts and operating models.

In Komoka, Ont., a new-look No Frills store combines the banner's focus on low prices with a refreshed design and expanded fresh and prepared-food offering. In Dutton, Ont., Loblaw introduced a smaller rural format with a curated 4,000-product assortment designed to provide a full-value grocery shop more efficiently in smaller communities.

Loblaw is investing in the stores Canadians already use as well. The company's 2026 capital program includes renovations to more than 190 existing locations, with investments ranging from refreshed food and fresh offerings to improvements on the right-hand side of the store.

The capital investment is part of a broader focus on customer value. Since 2022, the share of Loblaw grocery sales purchased on promotion has increased four percentage points, while No Name promotional sales have grown 18 per cent. In the second quarter, e-commerce sales increased nearly 20 per cent year over year.

Expanding convenient access to health care

Equally important is the company's continued investment in its Shoppers Drug Mart and Pharmaprix network, opening new pharmacies while improving existing stores and expanding pharmacy and health care services.

New concepts include refreshed beauty and front-store experiences and a food realignment designed to bring customers more convenience, value and multicultural products. Seventeen locations have completed the food realignment to date, with 43 expected by year-end.

Investing behind growth

Beyond its Canadian investment program, Loblaw continues to expand banners with significant growth potential. In June, T&T Supermarket opened its first California location in San Jose, generating the highest first-week sales of any store opening in Loblaw history. Two additional California locations are planned in 2026, alongside T&T's continued growth in Washington state.

Taken together, Loblaw's remaining 2026 investment reflects a strategy of putting capital behind areas where customer demand is strongest -- expanding its network, improving existing stores and pharmacies, and testing new formats that can deliver greater value, convenience and access to care.

About Loblaw Companies Ltd.

Loblaw is Canada's food and pharmacy leader, and the nation's largest retailer. Loblaw provides Canadians with grocery, pharmacy and health services, other health and beauty products, apparel, general merchandise, and wireless mobile products and services. With more than 2,800 locations, Loblaw, its franchisees and associate-owners employ more than 220,000 full- and part-time employees, making it one of Canada's largest private sector employers.

Loblaw's purpose -- live life well -- puts first the needs and well-being of Canadians who make one billion transactions annually in the company's stores. Loblaw is positioned to meet and exceed those needs in many ways: convenient locations; more than 1,100 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at nearly 1,400 Shoppers Drug Mart and Pharmaprix locations and in close to 500 grocery stores; affordable Joe Fresh fashion and family apparel; and four of Canada's top-consumer brands in Life Brand, Farmer's Market, No Name and President's Choice.

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