Loblaw Companies (L) investor relations material

Strategic priorities, vision, and leadership

• Focus on expanding Hard Discount and Shoppers Drug Mart store networks, targeting 70–75 new stores annually, and leveraging a diverse, experienced management team with global expertise to drive innovation and execution.

• Emphasis on profitable growth through disciplined financial management, capital deployment, and fast decision-making, guided by transparency, simplicity, and operational excellence.

• Enhanced digital ecosystem through AI-driven personalization, e-commerce, and loyalty integration, with PC Optimum as a central asset, driving higher customer engagement and spend.

• Continued investment in private label innovation, multicultural offerings, and health/wellness categories to drive differentiation and category leadership.

• Ongoing evaluation of inorganic and geographic growth opportunities, including T&T Supermarkets expansion in Canada and the U.S., and disciplined approach to capital deployment.

Financial framework, performance, and capital allocation

• Commitment to 8–10% annual EPS growth, achieved through 2–4% top-line growth, operating leverage, and disciplined capital allocation, including share buybacks and targeted investments.

• Achieved a 10.5% CAGR in adjusted EPS from 2015 to 2025, with continued growth expected; outperformed peers in EPS and share price growth from 2020–2025.

• CapEx peaked at $2.4B with major investments in supply chain automation and new stores; expected to decline after 2028, freeing up cash for buybacks and dividends.

• Growth businesses (e.g., retail media, supply chain as a service, Lifemark, T&T U.S.) expected to double their share of earnings from 10% to 20% by 2031.

• Strong free cash flow supports ongoing investments, dividends, and share buybacks, with 15 years of consecutive dividend increases.

Core retail, digital, and AI-driven growth

• Operates 2,800+ locations, serving 90% of Canadians within 10 minutes, and processes over 1 billion transactions annually.

• Digital sales exceeded $4.5B in 2025, with a 15% CAGR in e-commerce; PC Optimum loyalty program has 18M active members.

• AI embedded across customer and colleague experiences, including conversational commerce, supply chain optimization, and store operations, driving productivity and cost savings.

• Retail media business surpassing CAD 100 million EBIT, with significant runway in in-store media, measurement, and data analytics.

• Supply chain as a service generating over CAD 200 million, targeting CAD 400 million, leveraging national distribution and logistics capabilities.