Loblaw Companies Limited Reports First Quarter 2009 Results



    BRAMPTON, ON May 5 /CNW/ -

    
    2009 First Quarter Summary(1)

    -   Basic net earnings per common share of $0.40, up 73.9%
    -   EBITDA(2) margin of 5.3%
    -   Sales of $6,718 million, growth of 2.9%
    -   Same-store sales growth of 2.1%


                               ----------
    For the periods ended
     March 28, 2009 and                         2008
     March 22, 2008 (unaudited)            (12 weeks -
    ($ millions except where        2009    restated           $           %
     otherwise indicated)      (12 weeks)        (3))     Change      Change
    -------------------------------------------------------------------------
    Sales                       $  6,718    $  6,527         191        2.9%
    Gross profit                   1,614       1,490         124        8.3%
    Operating income                 226         156          70       44.9%
    Net earnings                     109          63          46       73.0%
    Basic net earnings per
     common share ($)               0.40        0.23        0.17       73.9%
    -------------------------------------------------------------------------
    Same-store sales growth (%)     2.1%        2.8%
    Operating margin                3.4%        2.4%
    EBITDA(2)                   $    358    $    286          72       25.2%
    EBITDA margin(2)                5.3%        4.4%
    -------------------------------------------------------------------------
                               ----------

    (1) This report contains forward-looking information. See Forward-Looking
        Statements for a discussion of material factors that could cause
        actual results to differ materially from the conclusions, forecasts
        and projections herein. This report must be read in conjunction with
        Loblaw Companies Limited's filings with securities regulators made
        from time to time, all of which can be found at www.sedar.com and at
        www.loblaw.ca.
    (2) See Non-GAAP Financial Measures.
    (3) See note 2 to the unaudited interim consolidated financial
        statements.

    -   The Company remains on track and is continuing to focus on its food
        offering, store enhancements, product innovation, infrastructure
        improvements and customer value.

    -   Sales and same-store sales growth in the first quarter of 2009 were
        affected:
           -  negatively by approximately 0.8% as a result of the shift of
              the Easter holiday into the second quarter of 2009;
           -  negatively by approximately 0.7% as a result of a strike in
              certain Maxi stores in Quebec; and
           -  positively by approximately 0.4% due to the shift of New Years
              day into the fourth quarter of 2008 and the resulting extra
              selling day in the first quarter of 2009.

    -   Sales growth in the quarter was negatively affected by 0.5% due to
        the sale of the Company's food service business in the last quarter
        of 2008.

    -   In the first quarter of 2009:
           -  sales growth in both food and drugstore was strong;
           -  apparel sales growth was moderate while sales of other general
              merchandise declined significantly;
           -  gas bar sales declined as a result of lower retail gas prices,
              despite moderate volume growth; and
           -  internal retail food price inflation was below food price
              inflation as measured by "The Consumer Price Index for Food
              Purchased from Stores" and lower than the fourth quarter of
              2008. In the first quarter of 2008, the Company experienced
              internal retail food price deflation.

    -   Gross profit as a percentage of sales was 24.0%, an increase of 120
        basis points. The improvement was attributable to the Company's focus
        on cost reduction including initiatives to reduce shrink, buying
        synergies and more disciplined vendor management. Sales mix,
        successful promotional campaigns and inflation also attributed to the
        improvements.

    -   Operating income in the first quarter of 2009 was influenced by
        charges related to the effect of stock-based compensation net of
        equity forwards of $19 million in 2009 compared with $25 million in
        2008. The effect on basic net earnings per common share was a charge
        of $0.07 (2008 - $0.10).

    -   The Company incurred an incremental cost of $23 million in 2009
        related to its investment in information technology and supply chain,
        which negatively affected basic net earnings per common share by
        $0.05.

    -   Operating income and operating margin were positively influenced by
        improved gross profit and lower net stock-based compensation costs,
        partially offset by the incremental investment in information
        technology and supply chain.

    -   EBITDA(1) was positively affected in the quarter by higher sales, the
        improvement in gross profit, lower net stock-based compensation costs
        and was partially offset by the incremental investment in information
        technology and supply chain.
    

    "Along with the rest of the food retail industry, our results have
benefited from food price inflation. Our focus remains on consistent execution
while undertaking aggressive store renovation and infrastructure programs,"
said Galen G. Weston, Executive Chairman, Loblaw Companies Limited, "We remain
cautious and prepared for continuing challenges through 2009, as inflation
could unwind and economic conditions remain volatile."

    (1) See Non-GAAP Financial Measures.


    Forward-Looking Statements

    This Quarterly Report for Loblaw contains forward-looking statements
about the Company's objectives, plans, goals, aspirations, strategies,
financial condition, liquidity, obligations, results of operations, cash
flows, performance, prospects and opportunities. Words such as "anticipate",
"expect", "believe", "foresee", "could", "estimate", "goal", "intend", "plan",
"seek", "strive", "will", "may" and "should" and similar expressions, as they
relate to the Company and its management, are intended to identify
forward-looking statements. These forward-looking statements are not
historical facts but reflect the Company's current expectations concerning
future results and events.
    These forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ materially
from current expectations, including the possibility that the Company's plans
and objectives will not be achieved. These risks and uncertainties include,
but are not limited to: changes in economic conditions including the rate of
inflation; changes in consumer spending and preferences; heightened
competition, whether from new competitors or current competitors; changes in
the Company's or its competitors' pricing strategies; failure of the Company's
franchised stores to perform as expected; risks associated with the terms and
conditions of financing programs offered to the Company's franchisees; failure
to realize sales growth, anticipated cost savings or operating efficiencies
from the Company's major initiatives, including investments in the Company's
information technology systems, supply chain investments and other cost
reduction and simplification initiatives; increased costs relating to
utilities, including electricity, and fuel; the inability of the Company's
information technology infrastructure to support the requirements of the
Company's business; the inability of the Company to manage inventory to
minimize the impact of obsolete or excess issues and to control shrink;
failure to execute successfully and in a timely manner the Company's major
initiatives, including the implementation of strategies and introduction of
innovative and reformulated products; unanticipated results associated with
the Company's strategic initiatives, including those related to compensation
costs; the inability of the Company's supply chain to service the needs of the
Company's stores; deterioration in the Company's relationship with its
employees, particularly through periods of change in the Company's business;
failure to achieve desired results in labour negotiations, including the terms
of future collective bargaining agreements which could lead to work stoppages;
changes to the regulatory environment in which the Company operates; the
adoption of new accounting standards and changes in the Company's use of
accounting estimates including in relation to inventory valuation;
fluctuations in the Company's earnings due to changes in the value of
stock-based compensation and equity forward contracts relating to common
shares; changes in the Company's tax liabilities resulting from changes in tax
laws or future assessments; detrimental reliance on the performance of
third-party service providers; public health events; the inability of the
Company to obtain external financing; changes in interest and currency
exchange rates; the inability of the Company to collect on its credit card
receivables; any requirement of the Company to make contributions to its
registered funded defined benefit pension plans in excess of those currently
contemplated; the inability of the Company to attract and retain key
executives; and quality control issues with vendors. These and other risks and
uncertainties are discussed in the Company's materials filed with the Canadian
securities regulatory authorities from time to time, including the Risks and
Risk Management section of the Management's Discussion and Analysis included
in the Company's 2008 Annual Report - Financial Review. These forward-looking
statements reflect management's current assumptions regarding these risks and
uncertainties and their respective impact on the Company.
    Other risks and uncertainties not presently known to the Company or that
the Company presently believes are not material could also cause actual
results or events to differ materially from those expressed in its
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect the Company's expectations
only as of the date of this Quarterly Report. The Company disclaims any
intention or obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by law.


    Management's Discussion and Analysis

    The following Management's Discussion and Analysis ("MD&A") for Loblaw
Companies Limited and its subsidiaries (collectively, the "Company" or
"Loblaw") should be read in conjunction with the Company's 2009 unaudited
interim period consolidated financial statements and the accompanying notes
and the audited annual consolidated financial statements and the accompanying
notes for the year ended January 3, 2009 and the related annual MD&A included
in the Company's 2008 Annual Report - Financial Review. The Company's 2009
unaudited interim period consolidated financial statements and the
accompanying notes have been prepared in accordance with Canadian generally
accepted accounting principles ("GAAP") and are reported in Canadian dollars.
These interim period consolidated financial statements include the accounts of
Loblaw Companies Limited and its subsidiaries and variable interest entities
("VIEs") that the Company is required to consolidate in accordance with
Accounting Guideline 15, "Consolidation of Variable Interest Entities". A
glossary of terms used throughout this Quarterly Report can be found on page
83 of the Company's 2008 Annual Report - Financial Review. In addition, this
Quarterly Report includes the following terms: "rolling year return on net
assets(1)" which is defined as cumulative operating income for the latest four
quarters divided by average net assets(1) and "rolling year return on
shareholders' equity" which is defined as cumulative net earnings available to
common shareholders for the latest four quarters divided by average total
common shareholders' equity.
    The information in this MD&A is current to May 4, 2009, unless otherwise
noted.

    (1) See Non-GAAP Financial Measures.

    Results of Operations

    The Company continued to make steady progress in its turnaround efforts
in the first quarter of 2009. The Company remains on track and is continuing
to focus on its food offering, store enhancements, product innovation,
infrastructure improvements and customer value.

    Sales

    Sales for the first quarter increased by 2.9% to $6,718 million compared
to $6,527 million in the first quarter of 2008.

    
    The following factors explain the major components in the change in sales
for the first quarter of 2009 compared to the same period in 2008:

    -   same-store sales growth of 2.1%;
    -   a shift in Easter holiday sales into the second quarter of 2009
        resulted in lower sales and same-store sales growth of approximately
        0.8% during the first quarter;
    -   an additional selling day in the first week of 2009 due to New Year's
        Day occurring in the fourth quarter of 2008 resulted in higher sales
        and same-store sales growth of approximately 0.4%;
    -   sales and same-store sales growth were negatively impacted by 0.7%
        due to a strike in certain Maxi stores in Quebec. These stores
        reopened during the quarter except two stores that closed
        permanently;
    -   sales growth was negatively impacted by 0.5% due to the sale of the
        Company's food service business in the fourth quarter of 2008;
    -   sales growth in both food and drugstore was strong;
    -   apparel sales growth was moderate while other general merchandise
        sales growth declined significantly due to reductions in
        discretionary consumer spending, the timing of Easter and reductions
        in assortment and square footage;
    -   gas bar sales declined as a result of lower retail gas prices,
        despite moderate volume growth;
    -   internal retail food price inflation was below the national food
        price inflation of 9.0% as measured by "The Consumer Price Index for
        Food Purchased from Stores" ("CPI") and lower than the fourth quarter
        of 2008. In the first quarter of 2008, the Company experienced
        internal retail food price deflation. CPI does not necessarily
        reflect the effect of inflation on the specific mix of goods sold in
        Loblaw stores; and
    -   during the first quarter of 2009, net retail square footage remained
        flat despite the opening of 3 new corporate and franchised stores and
        the closure of 8 corporate and franchised stores. During the latest
        four quarters 34 new corporate and franchised stores were opened,
        including stores that underwent conversions and major expansions, and
        40 corporate and franchised stores were closed, resulting in a net
        increase of 0.1 million square feet or 0.3%.
    

    Gross Profit

    Gross profit increased by $124 million to $1,614 million in the first
quarter of 2009 compared to $1,490 million in 2008. Gross profit as a
percentage of sales was 24.0% in the first quarter of 2009 compared to 22.8%
in 2008. The increase in gross profit and gross profit as a percentage of
sales was due to the Company's focus on cost reduction including initiatives
to reduce shrink, buying synergies, and more disciplined vendor management.
Sales mix, successful promotional campaigns and inflation also contributed to
the improvements.

    Operating Income

    Operating income was $226 million for the first quarter of 2009 compared
to $156 million in the same period of 2008, an increase of 44.9%. Operating
margin was 3.4% for the first quarter of 2009 compared to 2.4% in 2008.
Partially offsetting the improvement in gross profit were costs of $23 million
related to the Company's incremental investment in information technology and
supply chain. Operating income for the first quarter of 2009 was also
influenced by a charge of $19 million (2008 - $25 million) related to
stock-based compensation net of the equity forwards as described in note 15 to
the unaudited interim consolidated financial statements. The non-cash charge
on equity forwards resulted from a decrease in the Company's share price
during the first quarter of 2009.
    The Company experienced slightly higher store labour costs in the first
quarter of 2009 as a result of wage inflation and ongoing investments in
service.
    EBITDA(1) increased by $72 million, or 25.2%, to $358 million in the
first quarter of 2009 compared to $286 million in the first quarter of 2008.
EBITDA margin(1) increased in the first quarter of 2009 to 5.3% from 4.4% in
the comparable period of 2008. The increases in EBITDA(1) and EBITDA margin(1)
were due to higher sales, the improvement in gross profit, lower net
stock-based compensation costs and were partially offset by the incremental
investment in information technology and supply chain.

    Interest Expense and Other Financing Charges

    Interest expense and other financing charges for the first quarter of
2009 were $61 million compared to $58 million in the same period of 2008. The
following items impacted interest expense and other financing charges:

    
    -   interest on long term debt of $63 million (2008 - $66 million);
    -   interest on financial derivative instruments, which includes the
        effect of the Company's interest rate swaps, cross currency swaps and
        equity forwards, of $1 million (2008 - income of $1 million);
    -   net short term interest expense of nil (2008 - $1 million);
    -   interest income on security deposits of $1 million
        (2008 - $3 million);
    -   dividends on capital securities of $3 million (2008 - nil); and
    -   interest expense of $5 million (2008 - $5 million) was capitalized to
        fixed assets.
    

    Income Taxes

    The effective income tax rate in the first quarter of 2009 increased to
37.0% compared to 36.7% in the first quarter of 2008 primarily due to a change
in the proportion of taxable income earned across different tax jurisdictions
and the tax impact of non-deductible and non-taxable amounts which was
partially offset by a reduction in current year income tax expense relating to
certain income tax matters relative to the prior year.

    Net Earnings

    Net earnings for the first quarter increased by $46 million, or 73.0%, to
$109 million from $63 million in the first quarter of 2008. Basic net earnings
per common share for the first quarter increased by $0.17, or 73.9%, to $0.40
from $0.23 in the first quarter of 2008.
    Basic net earnings per common share was affected in the first quarter of
2009 compared to the first quarter of 2008 by a charge of $0.07 (2008 - $0.10)
per common share for the net effect of stock-based compensation net of equity
forwards as described in note 15 to the unaudited interim consolidated
financial statements.

    (1) See Non-GAAP Financial Measures.

    Financial Condition

    Financial Ratios

    The Company's net debt(1) to equity ratio continued to be within the
Company's internal guideline of less than 1:1. The net debt(1) to equity ratio
was 0.59:1 at the end of the first quarter of 2009 compared to 0.74:1 at the
end of the first quarter of 2008 and 0.55:1 at year end 2008. Equity for the
purpose of calculating the net debt(1) to equity ratio is defined by the
Company as capital securities and shareholders' equity. The increase in the
net debt(1) to equity ratio at the end of the first quarter of 2009 when
compared to year end 2008 was due to the increase in short term debt which was
required to fund working capital. The interest coverage ratio was 3.4 times
for the first quarter of 2009 compared to 2.5 times in 2008.
    The rolling year return on net assets(1) at the end of the first quarter
of 2009 increased to 11.0%, compared to 7.5% for the comparable period in
2008, and to 10.7% at year end 2008. The rolling year return on shareholders'
equity at the end of the first quarter of 2009 increased to 10.5%, compared to
6.3% at the end of the first quarter of 2008, and to 9.7% at year end 2008.
The ratios in the first quarter of 2009 were positively impacted by the
increase in cumulative operating income for the latest four quarters.

    Dividends

    The Company's Board of Directors declared a dividend of $0.21 per common
share with a payment date of April 1, 2009 and $0.37 per second preferred
share Series A with a payment date of April 30, 2009. Subsequent to quarter
end, the Board declared a quarterly dividend of $0.21 per common share payable
on July 1, 2009 and a quarterly dividend of $0.37 per second preferred share
Series A payable July 31, 2009.

    Outstanding Share Capital

    The Company's outstanding share capital is comprised of common shares and
preferred shares. An unlimited number of common shares is authorized and
274,173,564 common shares were outstanding at quarter end. In addition, 12
million second preferred shares Series A are authorized and 9 million of these
shares were outstanding at the end of the first quarter of 2009. The preferred
shares are classified as capital securities and are included in liabilities.
Further information on the Company's outstanding share capital is provided in
note 13 to the unaudited interim period consolidated financial statements.

    Liquidity and Capital Resources

    Cash Flows used in Operating Activities

    First quarter cash flows used in operating activities were $356 million
in 2009 compared to $327 million in the comparable period in 2008. The
increase in cash flows used in operating activities for the first quarter was
mainly due to the change in non-cash working capital as a result of changes in
accounts payable and accrued liabilities. These changes were partially offset
by an increase in operating income.

    Cash Flows used in (from) Investing Activities

    First quarter cash flows used in investing activities were $30 million
compared to cash flows from investing activities of $106 million in 2008. The
first quarter change was primarily due to the change in short term investments
and the increase in cash flows from credit card receivables after
securitization. Capital investment for the first quarter amounted to $123
million (2008 - $113 million). The Company's estimate of the capital
investment for 2009 is approximately $750 million.

    Cash Flows from Financing Activities

    First quarter cash flows from financing activities were $282 million in
2009 compared to $346 million in 2008. The change was primarily due to the
repayment of the Company's $125 million 5.75% medium term note, partially
offset by lower dividend payments as a result of the timing of the payment of
common share dividends. During the first quarter of 2009, short term debt
increased by $384 million primarily to fund working capital requirements and
repay the $125 million medium term note.

    Net Debt(1)

    In the first quarter of 2009, the Company revised its definition of net
debt(1) to include the fair value of financial derivative assets and
liabilities as the Company believes the measure should contain all interest
bearing financing arrangements.
    Net debt(1) was $3,586 million at the end of the first quarter of 2009
compared to $4,063 million at the end of the first quarter of 2008. The
decrease of $477 million was partially due to the $218 million issuance of
capital securities in the third quarter of 2008, the proceeds of which were
used to repay a portion of the Company's short term debt. During the first
quarter of 2009 net debt(1) increased by $293 million, primarily due to an
increase in short term debt which was required to fund working capital. During
the first quarter of 2008, net debt increased by $494 million.

    (1) See Non-GAAP Financial Measures.

    Sources of Liquidity

    Cash and cash equivalents, short term investments, future operating cash
flow and the amounts available to be drawn against the Company's credit
facility are expected to enable the Company to finance its capital investment
program and fund its ongoing business requirements including working capital
and pension plan funding, over the next twelve months. Given reasonable access
to capital markets, the Company does not foresee any difficulty in securing
financing to satisfy its long term obligations.
    From time to time, PC Bank, a wholly owned subsidiary of the Company,
securitizes credit card receivables through the sale of a portion of the total
interest in these receivables to independent trusts. The independent trusts'
recourse to PC Bank's assets is limited to PC Bank's retained interests and is
further supported by the Company through a standby letter of credit (2009 -
$116 million; 2008 - $89 million) on a portion of the securitized amount. A
portion of the securitized receivables is held by an independent trust
facility with a term of 364 days, subject to annual renewal. If the facility
is not renewed, collections must be accumulated prior to the expiry and the
amount of that portion of the securitized receivables repaid to the trust. In
the absence of securitization, the Company would be required to raise
alternative financing by issuing additional debt or equity instruments. During
the first quarter of 2009, one of these independent trusts filed a base shelf
prospectus which permits it to issue up to $1.5 billion of notes over a 25
month period. Any issuance of notes is subject to the availability of credit
markets.
    The Company has traditionally obtained its long term financing primarily
through a medium term notes program. The Company may refinance maturing long
term debt with medium term notes if market conditions are appropriate or it
may consider other alternatives.
    The following table sets out the current credit ratings of the Company.

    
                                  Dominion Bond
                                  Rating Service         Standard & Poor's
                          ---------------------------------------------------
    Credit Ratings              Credit                  Credit
     (Canadian Standards)       Rating       Trend      Rating       Outlook
    -------------------------------------------------------------------------
    Commercial paper       R-2 (middle)     Stable         A-2      Negative
    Medium term notes              BBB    Negative         BBB      Negative
    Preferred shares             Pfd-3    Negative   P-3 (high)
    Other notes and
     debentures                    BBB    Negative         BBB      Negative
    -------------------------------------------------------------------------
    

    The rating organizations listed above base their credit ratings on
quantitative and qualitative considerations. These credit ratings are
forward-looking and intended to give an indication of the risk that the
Company will not fulfill its obligations in a timely manner.
    The Company's ability to obtain funding from external sources may be
restricted by downgrades in the Company's current credit ratings should the
Company's financial performance and condition deteriorate. In addition, credit
and capital markets are subject to inherent global risks that may negatively
affect the Company's access and ability to fund its short term and long term
debt requirements. The Company mitigates these risks by maintaining
appropriate levels of cash and cash equivalents, short term investments and
security deposits, actively monitoring market conditions and diversifying its
sources of funding and maturity profile.

    Subsequent to the first quarter of 2009, Loblaw renewed its Normal Course
Issuer Bid to purchase on the Toronto Stock Exchange ("TSX"), or to enter into
equity derivatives to purchase, up to 13,708,678 of the Company's common
shares, representing 5% of the common shares outstanding. In accordance with
the requirements of the TSX, any purchases must be at the then market prices
of such shares. The Company did not purchase any shares under its Normal
Course Issuer Bids in the first quarter of 2009.

    Independent Funding Trusts

    Certain independent franchisees of the Company obtain financing through a
structure involving independent trusts, which were created to provide loans to
the independent franchisees to facilitate their purchase of inventory and
fixed assets, consisting mainly of fixtures and equipment. These trusts are
administered by a major Canadian chartered bank.
    The gross principal amount of loans issued to the Company's independent
franchisees by the independent trusts at the end of the first quarter of 2009
was $383 million (2008 - $402 million) including $153 million (2008 - $165
million) of loans payable by VIEs consolidated by the Company. The Company has
agreed to provide credit enhancement in the form of a standby letter of credit
for the benefit of the independent funding trust equal to approximately 15%
(2008 - 10%) of the principal amount of the loans outstanding at any point in
time. At the end of the first quarter of 2009, $66 million (2008 - $44
million) was available as a standby letter of credit. This standby letter of
credit has never been drawn upon.
    Subsequent to the first quarter of 2009, the Company renewed the $475
million, 364-day revolving committed credit facility that is the source of
funding to the independent trusts. The new financing structure requires
further review to determine if there are implications with respect to the
consolidation of VIEs.

    Equity Forward Contracts

    At quarter end, the Company had cumulative equity forwards to buy 4.8
million (2008 - 4.8 million) of its common shares at a cumulative average
forward price of $54.73 (2008 - $53.73) including $9.86 (2008 - $8.86) per
common share of interest expense, net of dividends. At the end of the first
quarter of 2009 the cumulative interest and unrealized market loss of $113
million (2008 - $119 million) is included in accounts payable and accrued
liabilities. Subsequent to the end of the quarter, the Company and the
counterparty agreed to terminate a portion of the equity forwards representing
1.6 million shares, which will lead to the extinguishment of a portion of the
liability. Based on the market value of the Company's share price at the end
of the quarter, the Company would be required to pay approximately $41
million.

    Employee Future Benefit Contributions

    During the first quarter of 2009, the Company contributed $21 million
(2008 - $13 million) to its registered funded defined benefit pension plans.
The Company expects to contribute $100 million to these plans during 2009.
This estimate may vary subject to actuarial valuations being completed, market
performance and regulatory requirements. The Company regularly monitors and
assesses plan experience and the impact of changes in participant
demographics, changes in capital markets and other economic factors that may
impact its funding requirements, employee future benefit costs and actuarial
assumptions.

    Quarterly Results of Operations

    The 52 week reporting cycle followed by the Company is divided into four
quarters of 12 weeks each except for the third quarter, which is 16 weeks in
duration. Every 5 years the fourth quarter is 13 weeks in duration which
occurred in fiscal 2008 and will reoccur in fiscal 2013. The following is a
summary of selected consolidated financial information derived from the
Company's unaudited interim period consolidated financial statements for each
of the eight most recently completed quarters.

    
    Summary of Quarterly Results
    (unaudited)

                                     First Quarter           Fourth Quarter

                                    2009        2008        2008        2007
    ($ millions                            (12 weeks   (13 weeks   (12 weeks
     except where                              - re-       - re-       - re-
     otherwise indicated)      (12 weeks)  stated(1))  stated(1))  stated(1))
    -------------------------------------------------------------------------
    Sales                       $  6,718    $  6,527    $  7,745    $  6,967
    Net earnings                $    109    $     63    $    190    $     43
    -------------------------------------------------------------------------
    Net earnings per
     common share
    Basic and diluted ($)       $   0.40    $   0.23    $   0.69    $   0.16
    -------------------------------------------------------------------------

                                     Third Quarter           Second Quarter

                                    2008        2007        2008        2007
    ($ millions                (16 weeks   (16 weeks   (12 weeks   (12 weeks
     except where                  - re-       - re-       - re-       - re-
     otherwise indicated)      stated(1))  stated(1))  stated(1))  stated(1))
    -------------------------------------------------------------------------
    Sales                       $  9,493    $  9,137    $  7,037    $  6,933
    Net earnings                $    157    $    117    $    140    $    120
    -------------------------------------------------------------------------
    Net earnings per
     common share
    Basic and diluted ($)       $   0.57    $   0.43    $   0.51    $   0.44
    -------------------------------------------------------------------------

    (1) See note 2 to the unaudited interim consolidated financial
        statements.

    Sales grew in the first quarter of 2009 compared to the first quarter of
2008. Same-store sales growth in the first quarter of 2009 was 2.1%. Sales and
same-store sales growth in the first quarter of 2009 were impacted:

    -   negatively by approximately 0.8% due to the timing of the Easter
        holiday, which resulted in a shift of sales into the second quarter
        of 2009 as compared to the first quarter of 2008;
    -   negatively by approximately 0.7% due to a strike in certain Maxi
        stores in Quebec; and
    -   positively by approximately 0.4% due to the shift of New Year's day
        into the fourth quarter of 2008 and the resulting extra selling day
        in the first quarter of 2009.
    

    Sales growth in the first quarter of 2009 was negatively affected by 0.5%
due to the sale of the Company's food service business in the last quarter of
2008. Sales increased in each quarter compared to the prior year due to
same-store sales increases. Quarterly same-store sales growth for 2008 for the
second to fourth quarters was 0.7%, 3.0% and 10.6%, respectively. The extra
selling week in the fourth quarter of 2008 positively impacted sales and
same-store sales growth by 7.9%.
    Fluctuations in quarterly net earnings reflect the underlying operations
of the Company as well as the impact of a number of specific charges including
restructuring and other charges, the net effect of stock-based compensation
net of the equity forwards and costs related to the incremental investment in
information technology and supply chain. Earnings in the first and second
quarters of 2008 and the fourth quarter of 2007 were pressured from
investments in lower retail pricing. Quarterly net earnings are also impacted
by seasonality and the timing of holidays. The impact of seasonality is
greatest in the fourth quarter and least in the first quarter.

    Internal Control over Financial Reporting

    Management is responsible for establishing and maintaining a system of
disclosure controls and procedures to provide reasonable assurance that all
material information relating to the Company and its subsidiaries is gathered
and reported to senior management on a timely basis so that appropriate
decisions can be made regarding public disclosure.
    Management is also responsible for establishing and maintaining adequate
internal controls over financial reporting to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with Canadian GAAP.
    In designing such controls, it should be recognized that due to inherent
limitations, any controls, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives
and may not prevent or detect misstatements. Additionally, management is
necessarily required to use judgement in evaluating controls and procedures.
    Management has evaluated whether there were changes in the Company's
internal controls over financial reporting that occurred during the period
beginning January 4, 2009 and ended on March 28, 2009 that have materially
affected, or are reasonably likely to materially affect, the Company's
internal control over financial reporting. Management has determined that no
material changes occurred during this period.

    Risks and Risk Management

    Detailed descriptions of the operating and financial risks and risk
management strategies are included in the Risks and Risk Management Section on
page 18 of the MD&A as well as note 26 to the Consolidated Financial
Statements included in the Company's 2008 Annual Report - Financial Review.
The following is an update to those risks and risk management strategies.

    Economic Environment

    In the last six months of 2008 and continuing into 2009, economic
conditions in Canada and the United States deteriorated significantly, which
may impact the Company's operations negatively in the future as increased
unemployment levels, changes in interest rates, reduced access to credit or
changes in inflation could impact consumer spending and ultimately negatively
affect the Company's sales and margins. Inflationary trends are unpredictable
and changes in the rate of inflation may affect consumer prices which may have
a negative effect on results. Management regularly monitors economic
conditions and their impact on the Company's operations and actively considers
these factors in making short term operating and longer term strategic
decisions.

    Accounting Standards Implemented in 2009

    Goodwill and Intangible Assets

    In November 2007, the CICA issued amendments to Section 1000 "Financial
Statement Concepts", and AcG 11 "Enterprises in the Development Stage", issued
a new Handbook Section 3064 "Goodwill and Intangible Assets" ("Section 3064")
to replace Section 3062 "Goodwill and Other Intangible Assets", withdrew
Section 3450 "Research and Development Costs" and amended Emerging Issues
Committee ("EIC") Abstract 27 "Revenues and Expenditures During the
Pre-operating Period" to not apply to entities that have adopted Section 3064.
These amendments provide guidance for the recognition of intangible assets,
including internally developed assets from research and development
activities, ensuring consistent treatment of all intangible assets, whether
separately acquired or internally developed. The Company has implemented the
standard effective for the first quarter of 2009, retroactively with
restatement of the comparative periods for the prior year. Restatement of the
comparative period resulted in a decrease to other assets of $48 million, an
increase in selling and administrative expenses of $5 million, a decrease in
depreciation and amortization of $6 million, a decrease to retained earnings
of $31 million, and a decrease of the future income taxes liability of $17
million and a nominal increase to the future tax expense. Upon implementation
of these requirements a decrease in other assets of $42 million, a decrease in
the future income tax liability of $15 million and a decrease to opening
retained earnings of $27 million were recorded on the consolidated balance
sheet as at January 3, 2009.

    
    Credit Risk and the Fair Value of Financial Assets and Financial
    Liabilities
    

    On January 20, 2009 EIC Abstract No. 173 "Credit Risk and the Fair Value
of Financial Assets and Financial Liabilities (EIC 173)" was issued. The
committee reached a consensus that a company's credit risk and the credit risk
of its counterparties should be considered when determining the fair value of
its financial assets and financial liabilities, including derivative
instruments. The transitional provisions resulting from the implementation of
EIC 173 require the abstract to be applied retrospectively without restatement
of prior periods. The Company has remeasured the financial assets and
financial liabilities, including derivative instruments, as at the beginning
of the period of adoption, January 4, 2009, to take into account its own
credit risk and counterparty credit risk. Upon implementation of this
abstract, a decrease in other assets of $12 million, a decrease in other
liabilities of $4 million, a decrease net of income taxes in accumulated other
comprehensive income of $2 million and a decrease in retained earnings of $6
million, were recorded in the consolidated balance sheet.

    International Financial Reporting Standards ("IFRS")

    The Canadian Accounting Standards Board will require all public companies
to adopt IFRS for interim and annual financial statements relating to fiscal
years beginning on or after January 1, 2011. The Company's transition from
Canadian GAAP to IFRS will take place in the first quarter of 2011 at which
time the Company will report both the current and comparative financial
information using IFRS.
    The Company has established a project structure including an IFRS team
led by the Chief Financial Officer to ensure the timely and appropriate
implementation of IFRS. The IFRS team consists of dedicated resources as well
as consultants and other employees on an as needed basis. This team reports
regularly to a steering committee comprised of senior management, as well as
to the audit committee.
    The Company has developed an IFRS conversion project plan consisting of
three main phases:

    Phase One: Diagnostic Impact Assessment

    This phase consisted of a high-level impact assessment that identified
the key areas of accounting differences between Canadian GAAP and IFRS that
are likely to impact the Company. The diagnostic impact assessment was
completed in 2008 and resulted in the ranking of accounting differences as
high, medium, or low priority for further analysis.

    Phase Two: Detailed Assessment

    This phase involved a comprehensive assessment of the differences between
IFRS and the Company's current accounting policies, and included reviews of
the differences with the various finance groups and business process owners to
further understand the impact of these differences. The detailed assessment
was completed in April 2009 at which time the potential changes to existing
accounting policies, business processes and information systems were
identified.

    Phase Three: Implementation

    This phase includes two components: Implementation Development and
Implementation Transition.
    The implementation development phase is currently in progress, and
involves an analysis of policy alternatives under IFRS, including certain
exemptions and elections available on transition. In addition, during this
phase the design and development of the required changes to business processes
and supporting information systems will be addressed.
    The implementation transition phase will involve the final approval of
accounting policies, including transitional elections, the execution of
changes to business processes and supporting information systems, and the
training of finance, operational and other staff. This phase will result in
the compilation of IFRS transitional adjustments, as required, as well as IFRS
financial statements with required reconciliations to Canadian GAAP.
    The International Accounting Standards Board work plan anticipates the
completion of several projects during 2010 and 2011 that could affect the
differences between Canadian GAAP and IFRS and the impact on the Company's
financial statements in future years. At this time, the Company cannot
quantify the impact that the future adoption of IFRS will have on the
Company's financial statements and operating performance measures.

    Outlook(1)

    The Company is focused on continuing to embed consistent execution across
the business while undertaking aggressive store renovation and infrastructure
programs. The Company remains cautious and prepared for continuing challenges
throughout 2009 as inflation could unwind and economic conditions remain
volatile.

    
    (1) To be read in conjunction with "Forward-Looking Statements".
    

    Additional Information

    Additional information about the Company has been filed electronically
with various securities regulators in Canada through the System for Electronic
Document Analysis and Retrieval (SEDAR) and is available online at
www.sedar.com and with the Office of the Superintendent of Financial
Institutions (OSFI) as the primary regulator of the Company's subsidiary,
President's Choice Bank.

    Non-GAAP Financial Measures

    The Company uses the following non-GAAP financial measures: EBITDA and
EBITDA margin, net debt, net debt to equity and rolling year return on net
assets. Historically, the Company utilized free cash flow and return on
average total assets as non-GAAP financial measures. Management believes the
rolling year return on net assets is a more complete measure of the return on
productive assets. The Company believes these non-GAAP financial measures
provide useful information to both management and investors in measuring the
financial performance and financial condition of the Company for the reasons
outlined below. These measures do not have a standardized meaning prescribed
by Canadian GAAP and, therefore, may not be comparable to similarly titled
measures presented by other publicly traded companies, nor should they be
construed as an alternative to other financial measures determined in
accordance with Canadian GAAP.

    EBITDA and EBITDA Margin

    The following table reconciles earnings before minority interest, income
taxes, interest expense, depreciation and amortization ("EBITDA") to operating
income which is reconciled to Canadian GAAP net earnings measures reported in
the unaudited interim period consolidated statements of earnings, for the
twelve weeks ended March 28, 2009 and March 22, 2008. EBITDA is useful to
management in assessing the Company's performance of its ongoing operations
and its ability to generate cash flows to fund its cash requirements,
including the Company's capital investment program.
    EBITDA margin is calculated as EBITDA divided by sales.

    
                                                    ----------
                                                         2009           2008
                                                                  12 weeks -
    ($ millions)                                    (12 weeks)  (restated(1))
    -------------------------------------------------------------------------
    Net earnings                                     $    109       $     63
    Add (deduct) impact of the following:
     Minority interest                                     (5)            (1)
     Income taxes                                          61             36
     Interest expense and other financing charges          61             58
    -------------------------------------------------------------------------
    Operating income                                      226            156
    Add impact of the following:
      Depreciation and amortization                       132            130
    -------------------------------------------------------------------------
    EBITDA                                           $    358       $    286
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------
    (1) See note 2 to the unaudited interim consolidated financial
        statements.
    

    Net Debt

    The following table reconciles net debt used in the net debt to equity
ratio to Canadian GAAP measures reported as at the periods ended as indicated.
In the first quarter of 2009, the Company revised its definition of net debt
to include the fair value of financial derivative assets and liabilities as
the Company believes the measure should contain all interest bearing financing
arrangements.
    The Company calculates net debt as the sum of long term debt, short term
debt and the fair value of financial derivative liabilities less cash and cash
equivalents, short-term investments, security deposits and fair value of
financial derivative assets. The Company believes this measure is useful in
assessing the amount of financial leverage employed.

    
                               ----------
                                   As at       As at       As at       As at
                                   March       March     January    December
    ($ millions)                28, 2009    22, 2008     3, 2009    29, 2007
    -------------------------------------------------------------------------
    Bank indebtedness           $     77    $     97    $     52    $      3
    Short term debt                  574         736         190         418
    Long term debt due within
     one year                         39         560         165         432
    Long term debt                 4,079       3,733       4,070       3,852
    Fair value of financial
     derivative liabilities
     (assets)                         46         (87)          6        (159)
    -------------------------------------------------------------------------
                                   4,815       5,039       4,483       4,546
    -------------------------------------------------------------------------
    Less: Cash and cash
           equivalents               438         574         528         430
          Short term investments     319          57         225         225
          Security deposits          472         345         437         322
    -------------------------------------------------------------------------
    Net debt                    $  3,586    $  4,063    $  3,293    $  3,569
    -------------------------------------------------------------------------
                               ----------
    

    The Second Preferred Shares are classified as capital securities and are
excluded from the calculation of net debt because the Company at its option
can convert the Second Preferred Shares into common shares. Fair value of
financial derivatives are not credit value adjusted in accordance with EIC
173, see note 2 to the unaudited interim consolidated financial statements.

    Net Assets

    The following table reconciles net assets used in the rolling year return
on net assets ratio to Canadian GAAP measures reported as at the periods ended
as indicated. Historically, the Company utilized return on average total net
assets as a non-GAAP financial measure. Management believes the rolling year
return on net assets is a more complete measure of the return on productive
assets.
    Net assets is calculated as total assets less cash and cash equivalents,
short term investments, security deposits and accounts payable and accrued
liabilities. Rolling year return on net assets is calculated as cumulative
operating income for the latest four quarters divided by average net assets.

    
                                           ----------
                                                           As at       As at
                                                        March 22,  January 3,
                                               As at        2008        2009
                                            March 28,  (restated   (restated
    ($ millions)                                2009        (1))        (1))
    -------------------------------------------------------------------------
    Canadian GAAP total assets              $ 13,814    $ 13,488    $ 13,943
    Less: Cash and cash equivalents              438         574         528
          Short term investments                 319          57         225
          Security deposits                      472         345         437
          Accounts payable and accrued
           liabilities                         2,370       2,350       2,823
    -------------------------------------------------------------------------
    Net assets                              $ 10,215    $ 10,162    $  9,930
    -------------------------------------------------------------------------
                                           ----------
    (1) See note 2 to the unaudited interim consolidated financial
        statements.



    Consolidated Statements of Earnings
    (unaudited)

    For the periods ended March 28,
     2009 and March 22, 2008                        ----------
                                                         2009           2008
                                                                 (12 weeks -
    ($ millions except where otherwise indicated)   (12 weeks)   restated(1))
    -------------------------------------------------------------------------
    Sales                                            $  6,718       $  6,527
    Cost of Merchandise Inventories Sold (note 9)       5,104          5,037
    -------------------------------------------------------------------------
    Gross Profit                                        1,614          1,490
    -------------------------------------------------------------------------
    Operating Expenses
      Selling and administrative expenses               1,256          1,204
      Depreciation and amortization                       132            130
    -------------------------------------------------------------------------
                                                        1,388          1,334
    -------------------------------------------------------------------------
    Operating Income                                      226            156
    Interest expense and other financing
     charges (note 3)                                      61             58
    -------------------------------------------------------------------------
    Earnings before Income Taxes and
     Minority Interest                                    165             98
    Income taxes (note 4)                                  61             36
    -------------------------------------------------------------------------
    Net Earnings before Minority Interest                 104             62
    Minority interest                                      (5)            (1)
    -------------------------------------------------------------------------
    Net Earnings                                     $    109       $     63
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net Earnings Per Common Share ($) (note 5)
    Basic and diluted                                $   0.40       $   0.23
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------
    See accompanying notes to the unaudited interim period consolidated
    financial statements.

    (1) See note 2 to the unaudited interim consolidated financial
        statements.



    Consolidated Statements of Changes in Shareholders' Equity
    (unaudited)

    For the periods ended March 28,
     2009 and March 22, 2008                        ----------
                                                         2009           2008
                                                    (12 weeks -   (12 weeks -
    ($ millions except where otherwise indicated)  restated(1))  restated(1))
    -------------------------------------------------------------------------
    Common Share Capital, Beginning and
     End of Period                                   $  1,196       $  1,196
    -------------------------------------------------------------------------
    Retained Earnings, Beginning of Period           $  4,577       $  4,289
    Cumulative impact of implementing new
     accounting standards (note 2)                         (6)           (32)
    Net earnings                                          109             63
    Dividends declared per common share
     - 21 cents (2008 - 21 cents)                         (58)           (58)
    -------------------------------------------------------------------------
    Retained Earnings, End of Period                 $  4,622       $  4,262
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Accumulated Other Comprehensive Income,
     Beginning of Period                             $     30       $     19
    Cumulative impact of implementing new
     accounting standards (note 2)                         (2)             -
    Other comprehensive loss                               (5)            (1)
    -------------------------------------------------------------------------
    Accumulated Other Comprehensive Income,
     End of Period (note 14)                         $     23       $     18
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Shareholders' Equity                       $  5,841       $  5,476
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------
    See accompanying notes to the unaudited interim period consolidated
    financial statements.



    Consolidated Statements of Comprehensive Income
    (unaudited)

    For the periods ended March 28,
     2009 and March 22, 2008                        ----------
                                                         2009           2008
                                                                 (12 weeks -
    ($ millions)                                    (12 weeks)   restated(1))
    -------------------------------------------------------------------------
    Net earnings                                     $    109       $     63
    Other comprehensive income, net of income taxes
      Net unrealized gain on available-for-sale
       financial assets                                     7              9
      Reclassification of net (gain) loss on
       available-for-sale financial assets to
       net earnings                                       (14)            12
    -------------------------------------------------------------------------
                                                           (7)            21
    -------------------------------------------------------------------------
      Net loss on derivatives designated as cash
       flow hedges                                         (3)            (9)
      Reclassification of net loss (gain) on
       derivatives designated as cash flow hedges
       to net earnings                                      5            (13)
    -------------------------------------------------------------------------
                                                            2            (22)
    -------------------------------------------------------------------------
    Other comprehensive loss                               (5)            (1)
    -------------------------------------------------------------------------
    Total Comprehensive Income                       $    104       $     62
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------
    See accompanying notes to the unaudited interim period consolidated
    financial statements.

    (1) See note 2 to the unaudited interim consolidated financial
        statements.



    Consolidated Balance Sheets
                                     ----------
                                                        As at          As at
                                         As at       March 22,     January 3,
                                      March 28,          2008           2009
                                          2009   (restated(1))  (restated(1))
    ($ millions)                    (unaudited)    (unaudited)      (audited)
    -------------------------------------------------------------------------
    Assets
    Current Assets
      Cash and cash equivalents
       (note 6)                       $    438       $    574       $    528
      Short term investments               319             57            225
      Accounts receivable
       (notes 7 and 8)                     620            840            867
      Inventories (notes 2 and 9)        2,242          1,912          2,188
      Income taxes                          78            172             40
      Future income taxes                   34             58             41
      Prepaid expenses and other assets     64             34             71
    -------------------------------------------------------------------------
    Total Current Assets                 3,795          3,647          3,960
    Fixed Assets                         8,051          7,943          8,045
    Goodwill                               807            807            807
    Other Assets                         1,161          1,091          1,131
    -------------------------------------------------------------------------
    Total Assets                      $ 13,814       $ 13,488       $ 13,943
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Liabilities
    Current Liabilities
      Bank indebtedness               $     77       $     97       $     52
      Short term debt (note 11)            574            736            190
      Accounts payable and accrued
       liabilities                       2,370          2,350          2,823
      Long term debt due within
       one year                             39            560            165
    -------------------------------------------------------------------------
    Total Current Liabilities            3,060          3,743          3,230
    Long Term Debt                       4,079          3,733          4,070
    Future Income Taxes                    148            154            156
    Other Liabilities                      452            368            445
    Capital Securities                     219              -            219
    Minority Interest                       15             14             20
    -------------------------------------------------------------------------
    Total Liabilities                    7,973          8,012          8,140
    -------------------------------------------------------------------------
    Shareholders' Equity
    Common Share Capital                 1,196          1,196          1,196
    Retained Earnings                    4,622          4,262          4,577
    Accumulated Other Comprehensive
     Income (note 14)                       23             18             30
    -------------------------------------------------------------------------
    Total Shareholders' Equity           5,841          5,476          5,803
    -------------------------------------------------------------------------
    Total Liabilities and
     Shareholders' Equity             $ 13,814       $ 13,488       $ 13,943
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     ----------
    Contingencies, commitments and guarantees (note 16).

    See accompanying notes to the unaudited interim period consolidated
    financial statements.

    (1) See note 2 to the unaudited interim consolidated financial
        statements.



    Consolidated Cash Flow Statements
    (unaudited)

    For the periods ended March 28,
     2009 and March 22, 2008                        ----------
                                                         2009           2008
                                                                 (12 weeks -
    ($ millions)                                    (12 weeks)   restated(1))
    -------------------------------------------------------------------------
    Operating Activities
      Net earnings before minority interest          $    104       $     62
      Depreciation and amortization                       132            130
      Future income taxes                                   6             (9)
      Change in non-cash working capital                 (584)          (532)
      Other                                               (14)            22
    -------------------------------------------------------------------------
    Cash Flows used in Operating Activities              (356)          (327)
    -------------------------------------------------------------------------
    Investing Activities
      Fixed asset purchases                              (123)          (113)
      Short term investments                              (89)           189
      Proceeds from fixed asset sales                       5             10
      Credit card receivables, after
       securitization (note 7)                            229             74
      Franchise investments and other receivables         (17)           (18)
      Other                                               (35)           (36)
    -------------------------------------------------------------------------
    Cash Flows (used in) from Investing Activities        (30)           106
    -------------------------------------------------------------------------
    Financing Activities
      Bank indebtedness                                    25             94
      Short term debt (note 11)                           384            318
      Long term debt
        Issued                                              8              5
        Retired (note 12)                                (135)           (13)
      Dividends                                             -            (58)
    -------------------------------------------------------------------------
    Cash Flows from Financing Activities                  282            346
    -------------------------------------------------------------------------
    Effect of foreign currency exchange rate
     changes on cash and cash equivalents                  14             19
    -------------------------------------------------------------------------
    Change in Cash and Cash Equivalents                   (90)           144
    Cash and Cash Equivalents, Beginning of Period        528            430
    -------------------------------------------------------------------------
    Cash and Cash Equivalents, End of Period         $    438       $    574
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------
    See accompanying notes to the unaudited interim period consolidated
    financial statements.

    (1) See note 2 to the unaudited interim consolidated financial
        statements.



    Notes to the Unaudited Interim Period Consolidated Financial Statements
    ($ millions except where otherwise indicated)

    Note 1. Summary of Significant Accounting Principles

    Basis of Presentation

    The unaudited interim period consolidated financial statements were
    prepared in accordance with Canadian generally accepted accounting
    principles ("GAAP") and follow the same accounting policies and methods
    of application as those used in the preparation of the 2008 audited
    annual consolidated financial statements and related notes for the year
    ended January 3, 2009 contained in the Annual Report - Financial Review
    ("2008 Annual Report") except as described in note 2. Under Canadian
    GAAP, additional disclosure is required in annual financial statements
    and accordingly the unaudited interim period consolidated financial
    statements should be read together with the audited annual consolidated
    financial statements and the accompanying notes included in the Loblaw
    Companies Limited 2008 Annual Report.

    Basis of Consolidation

    The unaudited consolidated interim financial statements include the
    accounts of Loblaw Companies Limited and its subsidiaries, collectively
    referred to as the "Company" or "Loblaw". The Company's interest in the
    voting share capital of its subsidiaries is 100%.

    The Company also consolidates variable interest entities ("VIEs")
    pursuant to Canadian Institute of Chartered Accountants ("CICA")
    Accounting Guideline 15, "Consolidation of Variable Interest Entities"
    ("AcG 15"), that are subject to control by Loblaw on a basis other than
    through ownership of a majority of voting interest. AcG 15 defines a
    variable interest entity as an entity that either does not have
    sufficient equity at risk to finance its activities without subordinated
    financial support or where the holders of the equity at risk lack the
    characteristics of a controlling financial interest. AcG 15 requires the
    primary beneficiary to consolidate VIEs and considers an entity to be the
    primary beneficiary of a VIE if it holds variable interests that expose
    it to a majority of the VIEs' expected losses or that entitle it to
    receive a majority of the VIEs' expected residual returns or both.

    Inventories

    The Company values merchandise inventories at the lower of cost and net
    realizable value. Costs include the costs of purchase net of vendor
    allowances plus other costs, such as transportation and shrink, that are
    directly incurred to bring inventories to their present location and
    condition.

    Use of Estimates and Assumptions

    The preparation of the unaudited interim period consolidated financial
    statements requires management to make estimates and assumptions that
    affect the reported amounts and disclosures made in the unaudited interim
    period consolidated financial statements and accompanying notes. These
    estimates and assumptions are based on management's historical
    experience, best knowledge of current events and conditions and
    activities that may be undertaken in the future. Actual results could
    differ from these estimates.

    Certain estimates, such as those related to valuation of inventories,
    goodwill, income taxes, Goods and Services Tax and provincial sales
    taxes, fixed asset impairment and employee future benefits, depend upon
    subjective or complex judgments about matters that may be uncertain, and
    changes in those estimates could materially impact the consolidated
    financial statements. Illiquid credit markets, volatile equity, foreign
    currency, and energy markets and declines in consumer spending have
    combined to increase the uncertainty inherent in such estimates and
    assumptions. As future events and their effects cannot be determined with
    precision, actual results could differ significantly from these
    estimates. Changes in those estimates resulting from continuing changes
    in the economic environment will be reflected in the financial statements
    in future periods.

    Note 2. Implementation of New Accounting Standards

    Accounting Standards Implemented in 2009

    Goodwill and Intangible Assets

    In November 2007, the CICA issued amendments to Section 1000 "Financial
    Statement Concepts", and AcG 11 "Enterprises in the Development Stage",
    issued a new Handbook Section 3064 "Goodwill and Intangible Assets"
    ("Section 3064") to replace Section 3062 "Goodwill and Other Intangible
    Assets", withdrew Section 3450 "Research and Development Costs" and
    amended Emerging Issues Committee ("EIC") Abstract 27 "Revenues and
    Expenditures During the Pre-operating Period" to not apply to entities
    that have adopted Section 3064. These amendments provide guidance for the
    recognition of intangible assets, including internally developed assets
    from research and development activities, ensuring consistent treatment
    of all intangible assets, whether separately acquired or internally
    developed. The Company has implemented the standard effective for the
    first quarter of 2009, retroactively with restatement of the comparative
    periods for the prior year. Restatement of the comparative period
    resulted in a decrease to other assets of $48, an increase in selling and
    administrative expenses of $5, a decrease in depreciation and
    amortization of $6, a decrease to retained earnings of $31, and a
    decrease of the future income taxes liability of $17 and a nominal
    increase to the future tax expense. Upon implementation of these
    requirements a decrease in other assets of $42, a decrease in the future
    income tax liability of $15 and a decrease to opening retained earnings
    of $27 were recorded on the consolidated balance sheet as at January 3,
    2009.

    Credit Risk and the Fair Value of Financial Assets and Financial
    Liabilities

    On January 20, 2009 EIC Abstract No. 173 "Credit Risk and the Fair Value
    of Financial Assets and Financial Liabilities (EIC 173)" was issued. The
    committee reached a consensus that a company's credit risk and the credit
    risk of its counterparties should be considered when determining the fair
    value of its financial assets and financial liabilities, including
    derivative instruments. The transitional provisions resulting from the
    implementation of EIC 173 require the abstract to be applied
    retrospectively without restatement of prior periods. The Company has
    remeasured the financial assets and financial liabilities, including
    derivative instruments, as at the beginning of the period of adoption,
    January 4, 2009, to take into account its own credit risk and
    counterparty credit risk. Upon implementation of this abstract, a
    decrease in other assets of $12, a decrease in other liabilities of $4, a
    decrease net of income taxes in accumulated other comprehensive income of
    $2 and a decrease in retained earnings of $6, were recorded in the
    consolidated balance sheet.

    Accounting Standards Implemented in 2008

    Capital Disclosures and Financial Instruments - Disclosure and
    Presentation

    In December 2006, the CICA issued three new accounting standards: Section
    1535, "Capital Disclosures", Section 3862, "Financial Instruments -
    Disclosures" and Section 3863, "Financial Instruments - Presentation".
    The adoption of these sections did not have an impact on the Company's
    results of operations or financial condition.

    Inventories

    Effective January 1, 2008, the Company implemented Section 3031,
    "Inventories" ("Section 3031"), issued by the CICA in June 2007, which
    replaced Section 3030 of the same title. The transitional adjustments
    resulting from the implementation of Section 3031 were recognized in the
    2008 opening balance of retained earnings. Upon implementation of these
    requirements, a decrease in opening inventories of $65, an increase in
    current taxes receivable of $24 and a decrease of $41 to opening retained
    earnings as at December 30, 2007 were recorded on the consolidated
    balance sheet resulting mainly from the application of a consistent cost
    formula for all inventories having a similar nature and use.

    See note 2 of the 2008 Annual Report for further information.

    Note 3. Interest Expense and Other Financing Charges

                                                    ----------
                                                         2009           2008
    ($ millions)                                    (12 weeks)     (12 weeks)
    -------------------------------------------------------------------------
    Interest on long term debt                       $     63       $     66
    Interest expense (income) on financial
     derivative instruments                                 1             (1)
    Net short term interest expense                         -              1
    Interest income on security deposits                   (1)            (3)
    Dividends on capital securities                         3              -
    Capitalized to fixed assets                            (5)            (5)
    -------------------------------------------------------------------------
    Interest expense                                 $     61       $     58
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------

    In the first quarter of 2009, net interest expense of $59 (2008 - $61)
    was recorded related to the financial assets and financial liabilities
    not classified as held-for-trading.

    Interest and dividends on capital securities paid in the first quarter of
    2009 was $84 (2008 - $103), and interest received was $21 (2008 - $45).

    Note 4. Income Taxes

    The effective income tax rate in the first quarter of 2009 increased to
    37.0% compared to 36.7% in the first quarter of 2008 primarily due to a
    change in the proportion of taxable income earned across different tax
    jurisdictions and the tax impact of non-deductible and non-taxable
    amounts which was partially offset by a reduction in current year income
    tax expense relating to certain income tax matters relative to the prior
    year.

    Net income taxes paid in the first quarter were $100 (2008 - $84).

    Note 5. Basic and Diluted Net Earnings per Common Share
    ($, except where otherwise indicated)

                                                    ----------
                                                         2009           2008
                                                                 (12 weeks -
                                                    (12 weeks)   restated(1))
    -------------------------------------------------------------------------
    Net earnings ($ millions)                        $    109       $     63
    Dividends on capital securities ($ millions)            3              -
    -------------------------------------------------------------------------
    Net earnings for diluted earnings per share
     ($ millions)                                         112             63
    -------------------------------------------------------------------------
    Weighted average common shares outstanding
     (in millions)                                      274.2          274.2
    Dilutive effect of capital securities
     (in millions)                                        7.6              -
    -------------------------------------------------------------------------
    Diluted weighted average common shares
     outstanding (in millions)                          281.8          274.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted net earnings per
     common share ($)                                $   0.40       $   0.23
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------

    Stock options outstanding with an exercise price greater than the market
    price of the Company's common shares at the end of the first quarter were
    not recognized in the computation of diluted net earnings per common
    share. Accordingly, for the first quarter of 2009, 4,581,412 (2008 -
    9,572,128) stock options, with a weighted average exercise price of
    $52.69 (2008 - $44.19) per common share, were excluded from the
    computation of diluted net earnings per common share.

    Note 6. Cash and Cash Equivalents

    The components of cash and cash equivalents as at March 28, 2009,
    March 22, 2008 and January 3, 2009 were as follows:

                                     ----------
                                         As at          As at          As at
                                      March 28,      March 22,     January 3,
                                          2009           2008           2009
    -------------------------------------------------------------------------
    Cash                              $     38       $     48       $     42
    Cash equivalents - short term
     investments with a maturity of
     90 days or less:
      Bank term deposits                     -            171              -
      Government treasury bills            156            118            219
      Government-sponsored debt
       securities                           82             91             58
      Corporate commercial paper           162            146            209
    -------------------------------------------------------------------------
    Cash and cash equivalents         $    438       $    574       $    528
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     ----------

    In the first quarter of 2009, the Company recognized an unrealized
    foreign currency exchange gain of $29 (2008 - $33) as a result of
    translating its United States dollar denominated cash and cash
    equivalents, short term investments and security deposits which are
    included in other assets, of which a gain of $14 (2008 - $19) related to
    cash and cash equivalents. The resulting gain on cash and cash
    equivalents, short term investments and security deposits which are
    included in other assets is partially offset in operating income and
    other comprehensive income by the unrealized foreign currency exchange
    loss on the cross currency swaps.

    Note 7. Accounts Receivable

    From time to time, President's Choice Bank ("PC Bank"), a wholly owned
    subsidiary of the Company, securitizes credit card receivables through
    the sale of a portion of the total interest in these receivables to
    independent trusts. A portion of the securitized receivables are in an
    independent trust facility with a term of 364 days, subject to annual
    renewal. If the term of this facility is not renewed, collections will be
    accumulated prior to the expiry and the amount of that portion of the
    securitized receivables will be repaid to the trust. The independent
    trusts' recourse to PC Bank's assets is limited to PC Bank's retained
    interests and is further supported by the Company through a standby
    letter of credit for $116 (2008 - $89) on a portion of the securitized
    amount. Other receivables consist mainly of receivables from independent
    franchisees, associated stores and independent accounts.

                                     ----------
                                         As at          As at          As at
                                      March 28,      March 22,     January 3,
    ($ millions)                          2009           2008           2009
    -------------------------------------------------------------------------
    Credit card receivables           $  1,974       $  1,947       $  2,206
    Amount securitized                  (1,775)        (1,475)        (1,775)
    -------------------------------------------------------------------------
    Net credit card receivables            199            472            431
    Other receivables                      421            368            436
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Accounts receivable               $    620       $    840       $    867
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Credit card receivables that are past due of $6 (2008 - $11) as at
    March 28, 2009 are not classified as impaired as they are less than
    90 days past due and most receivables are reasonably expected to remedy
    the past due status. Any credit card receivable balances with a payment
    that is contractually 180 days in arrears or where the likelihood of
    collection is considered remote are written-off. Concentration of credit
    risk with respect to receivables is limited due to the Company's customer
    base being diverse. Credit risk on the credit card receivables is managed
    as described in note 26 of the Company's 2008 Annual Report. Other
    receivables that are past due but not impaired totalled $61 (2008 - $64)
    as at March 28, 2009.

    Note 8. Allowances for Receivables

    The allowance for credit card receivables recorded in the consolidated
    balance sheets is maintained at a level which is considered adequate to
    absorb credit related losses on credit card receivables. The allowance
    for credit card losses is recorded in accounts receivable in the
    consolidated balance sheets. The allowance for accounts receivable from
    independent franchisees is recorded in accounts payable and accrued
    liabilities on the consolidated balance sheets. The allowance for other
    receivables from associated stores and independent accounts is recorded
    in accounts receivable on the consolidated balance sheets. A continuity
    of the Company's allowances for losses is as follows:

    Credit Card Receivables

                                      12 weeks       12 weeks       53 weeks
                                         ended          ended          ended
                                     ----------
                                      March 28,      March 22,     January 3,
    ($ millions)                          2009           2008           2009
    -------------------------------------------------------------------------
    Allowance at beginning of period  $    (15)      $    (13)      $    (13)
    Provision for losses                    (3)            (2)           (35)
    Recoveries                              (1)            (2)           (14)
    Write-offs                               4              4             47
    -------------------------------------------------------------------------
    Allowance at end of period        $    (15)      $    (13)      $    (15)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     ----------

    Other Receivables

                                      12 weeks       12 weeks       53 weeks
                                         ended          ended          ended
                                     ----------
                                      March 28,      March 22,     January 3,
    ($ millions)                          2009           2008           2009
    -------------------------------------------------------------------------
    Allowance at beginning of period  $    (24)      $    (35)      $    (35)
    Provision for losses                   (29)            (8)           (81)
    Write-offs                              16             12             92
    -------------------------------------------------------------------------
    Allowance at end of period        $    (37)      $    (31)      $    (24)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                     ----------

    Note 9. Inventories

    The Company recorded $11 (2008 - $11) as an expense for the write-down of
    inventories below cost to net realizable value for inventories recorded
    as at March 28, 2009.

    Note 10. Employee Future Benefits

    The Company's total net benefit plan cost recognized in operating income
    was $44 (2008 - $39) for the first quarter. The total net benefit plan
    cost included costs for the Company's defined benefit pension and other
    benefit plans, defined contribution pension plans and multi-employer
    pension plans.

    Note 11. Short Term Debt

    As described in note 15 of the 2008 Annual Report, the Company's $800,
    5-year committed credit facility, provided by a syndicate of banks,
    contains certain financial covenants. Interest is based on a floating
    rate, primarily the bankers' acceptance rate and an applicable margin
    based on the Company's credit rating. As at March 28, 2009, $574
    (January 3, 2009 - $190, March 22, 2008 - $728) was drawn on the
    committed credit facility.

    Note 12. Long Term Debt

    In the first quarter of 2009, the $125 5.75% medium term note due
    January 22, 2009 matured and was repaid.

    As at March 28, 2009, $370 (USD $300) of fixed rate notes was recorded in
    long term debt on the consolidated balance sheet. For further information
    on the Company's policies with respect to managing debt and foreign
    exchange rate risk, refer to notes 1 and 26 of the Company's 2008 Annual
    Report.

    Note 13. Share Capital ($)

    During the first quarter of 2009, the Board of Directors declared
    dividends of $0.21 (2008 - $0.21) per common share and declared dividends
    of $0.37 per second preferred share. For financial statement presentation
    purposes, second preferred share dividends of $3 million are included as
    a component of interest expense and other financing charges on the
    Consolidated Statement of Earnings (see note 3).

    Subsequent to the first quarter of 2009, Loblaw renewed its Normal Course
    Issuer Bid ("NCIB") to purchase on the Toronto Stock Exchange, or enter
    into equity derivatives to purchase, up to 13,708,678 of Company's common
    shares, representing approximately 5% of the common shares outstanding.
    In accordance with the rules and by-laws of the Toronto Stock Exchange,
    Loblaw may purchase its shares at the then market price of such shares.
    The Company did not purchase any shares under its NCIB during the first
    quarter of 2009 or fiscal 2008.

    Note 14. Accumulated Other Comprehensive Income

    The following table provides further detail regarding the composition of
    accumulated other comprehensive income for the 12 week periods ended
    March 28, 2009 and March 22, 2008:

                                              12 weeks ended
                              -----------------------
                                  March 28, 2009          March 22, 2008
    -------------------------------------------------------------------------
                                       Avail-                  Avail-
                                        able-                   able-
                                Cash     for-           Cash     for-
                                Flow    sale            Flow    sale
    ($ millions)              Hedges  Assets   Total  Hedges  Assets   Total
    -------------------------------------------------------------------------
    Balance, beginning of
     period                    $  14   $  16   $  30   $  22   $  (3)  $  19
    Cumulative impact of
     implementing new
     accounting standards (net
     of income taxes recovered
     of $1 (2008 - nil))
     (see note 2)                 (2)      -      (2)      -       -       -
    Net unrealized gain on
     available-for-sale
     financial assets (net of
     income taxes of nil
     (2008 - nil))                 -       7       7       -       9       9
    Reclassification of
     loss (gain) on
     available-for-sale
     financial assets (net
     of income taxes of nil
     (2008 - nil))                 -     (14)    (14)      -      12      12
    Net loss on derivatives
     designated as cash flow
     hedges (net of income
     taxes of $1 (2008 - nil))    (3)      -      (3)     (9)      -      (9)
    Reclassification of loss
     (gain) on derivatives
     designated as cash flow
     hedges (net of income
     taxes of $3 (2008 - nil))     5       -       5     (13)      -     (13)
    -------------------------------------------------------------------------
    Balance, end of period     $  14   $   9   $  23   $   -   $  18   $  18
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                              -----------------------

    See note 23 of the Company's 2008 Annual Report for further details
    regarding the composition of accumulated other comprehensive income for
    the year ended January 3, 2009.

    An estimated gain of $11 (2008 - $7) on interest rate swaps is expected
    to be reclassified to net earnings during the next 12 months. Remaining
    amounts on the interest rate swaps will be reclassified to net earnings
    over periods up to 3 years. A loss of $5 (2008 - $8) on cross currency
    swaps will be reclassified to net earnings over the next 12 months but
    will be partially offset by the gain on available-for-sale assets.
    Remaining amounts on the cross currency swaps will be reclassified to net
    earnings over periods up to 5 years.

    Note 15. Stock-Based Compensation ($, except where otherwise indicated)

    The Company's compensation cost recognized in operating income related to
    its stock option plan and the associated equity forwards and the
    restricted share unit plan was as follows:

                                                    ----------
                                                         2009           2008
    ($ millions)                                    (12 weeks)     (12 weeks)
    -------------------------------------------------------------------------
    Stock option plan income                         $     (1)      $      -
    Equity forwards loss                                   19             25
    Restricted share unit plan expense                      1              -
    -------------------------------------------------------------------------
    Net stock-based compensation cost                $     19       $     25
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                    ----------

    Stock Option Plan

    During the first quarter of 2009, the Company paid the share appreciation
    value of a nominal amount (2008 - nil) on the exercise of 9,652 (2008 -
    nil) stock options. Under its existing stock option plan, which allows
    for settlement in shares or in the share appreciation value in cash at
    the option of the employee, the Company granted 2,640,846 (2008 -
    3,303,557) stock options with an exercise price of $30.99 (2008 - $28.95)
    per common share during the first quarter of 2009. In addition, 324,600
    (2008 - 264,185) stock options were forfeited or cancelled during the
    first quarter of 2009.

    At the end of the first quarter of 2009, a total of 10,199,254 (2008 -
    9,572,128) stock options were outstanding and represented approximately
    3.7% (2008 - 3.5%) of the Company's issued and outstanding common shares,
    which was within the Company's guideline of 5%. The Company's market
    price per common share at the end of the first quarter was $31.12 (2008 -
    $28.82).

    Restricted Share Unit ("RSU") Plan

    Under its existing RSU plan, the Company granted 425,093 RSUs (2008 -
    352,268) in the first quarter of 2009. In addition, 18,022 (2008 -
    20,163) RSUs were cancelled and 182,314 (2008 - 200,779) were settled in
    cash in the amount of $6 million (2008 - $7 million). At the end of the
    first quarter 1,054,156 (2008 - 900,013) RSUs remained outstanding.

    Note 16. Contingencies, Commitments and Guarantees

    Guarantees - Independent Funding Trusts

    Certain independent franchisees of the Company obtain financing through a
    structure involving independent trusts, which were created to provide
    loans to the independent franchisees to facilitate their purchase of
    inventory and fixed assets, consisting mainly of fixtures and equipment.
    These trusts are administered by a major Canadian chartered bank.

    The gross principal amount of loans issued to the Company's independent
    franchisees outstanding as of March 28, 2009 was $383 (2008 - $402)
    including $153 (2008 - $165) of loans payable by VIEs consolidated by the
    Company. Based on a formula, the Company has agreed to provide credit
    enhancement in the form of a standby letter of credit for the benefit of
    the independent funding trust equal to approximately 15% (2008 - 10%) of
    the principal amount of the loans outstanding at any point in time, $66
    (2008 - $44) as of March 28, 2009. The standby letter of credit has not
    been drawn upon.

    Subsequent to the first quarter of 2009, the Company renewed the $475
    million, 364-day revolving committed credit facility that is the source
    of funding to the independent trusts. The new financing structure
    requires further review to determine if there are implications with
    respect to the consolidation of VIEs.

    Legal Proceedings

    In 2008, the trustees of a multi-employer pension plan in which the
    Company's employees and those of its independent franchises participate
    are involved in proceedings brought by the Financial Services Commission
    of Ontario whereby it has been alleged that the trustees violated certain
    provisions of the Pensions Benefits Act (Ontario) in its management of
    the plan's funds. One of the trustees, an officer of Loblaw, is entitled
    to indemnification from the Company.

    The Company is the subject of various legal proceedings and claims that
    arise in the ordinary course of business. The outcome of all of these
    proceedings and claims is uncertain. However, based on information
    currently available, these proceedings and claims, individually and in
    the aggregate, are not expected to have a material impact on the Company.

    Earnings Coverage Exhibit to the Unaudited Interim Consolidated
    Financial Statements

    The following is the Company's updated earnings coverage ratio for the
    53 week period ended March 28, 2009 in connection with the Company's
    Short Form Base Shelf Prospectus dated June 5, 2008.

    -------------------------------------------------------------------------
    Earnings Coverage on long term debt obligations
    and capital securities(1)                                      3.91 times
    -------------------------------------------------------------------------

    The earnings coverage ratio on long term debt (including any current
    portion) and capital securities is equal to net earnings(2) before
    interest on long term debt, dividends on capital securities, income
    taxes and minority interest divided by interest on long term debt and
    dividends on capital securities as shown in the notes to the
    consolidated financial statements of the Company for the period.

    (1) Preferred shares are classified as capital securities and are
        included in liabilities on the consolidated balance sheet.
    (2) Adjusted for the effect of the change in accounting policy described
        in Note 2 of the Company's unaudited interim consolidated financial
        statements as at March 28, 2009.
    

    Corporate Profile

    Loblaw Companies Limited, a subsidiary of George Weston Limited, is
Canada's largest food distributor and a leading provider of drugstore, general
merchandise and financial products and services. Loblaw is one of the largest
private sector employers in Canada, with over 139,000 full-time and part-time
employees executing its business strategy in more than 1,000 corporate and
franchised stores from coast to coast. Through its portfolio of store formats,
Loblaw is committed to providing Canadians with a wide, growing and successful
range of products and services to meet the everyday household demands of
Canadian consumers. Loblaw is known for the quality, innovation and value of
its food offering. It offers Canada's strongest control (private) label
program, including the unique President's Choice, no name and Joe Fresh Style
brands. In addition, the Company makes available to consumers President's
Choice Financial services and offers the PC points loyalty program.
    Loblaw is committed to a strategy developed under three core themes:
Simplify, Innovate and Grow. The Company strives to be consumer focused, cost
effective and agile, with the goal of achieving long term growth for its many
stakeholders. Loblaw believes that a strong balance sheet is critical to
achieving its potential. It is highly selective in its consideration of
acquisitions and other business opportunities. The Company maintains an active
product program to support its control label program. It works to ensure that
its technology and systems logistics enhance the efficiency of its operations.

    Trademarks

    Loblaw Companies Limited and its subsidiaries own a number of trademarks.
Several subsidiaries are licensees of additional trademarks. These trademarks
are the exclusive property of Loblaw Companies Limited or the licensor.

    Investor Relations

    Shareholders, security analysts and investment professionals should
direct their requests to Inge van den Berg, Vice President, Public Affairs &
Investor Relations at the Company's National Head Office or by e-mail at
investor@loblaw.ca.
    Additional information has been filed electronically with various
securities regulators in Canada through the System for Electronic Document
Analysis and Retrieval (SEDAR) and with the Office of the Superintendent of
Financial Institutions (OSFI) as the primary regulator for the Company's
subsidiary, President's Choice Bank. The Company holds an analyst call shortly
following the release of its quarterly results. These calls are archived in
the Investor Zone section of the Company's website.

    Ce rapport est disponible en français.

    BRAMPTON, ON, May 5, 2009 - Loblaw Companies Limited will be releasing
its first quarter 2009 results on May 5, 2009, at 8 a.m. (EST). This release
will be followed by a conference call at 11:00 a.m.(EST), as well as an audio
webcast. To access via tele-conference, please dial (416) 644-3418. Playback
will be available one hour after the event at (416) 640-1917, passcode
21300499 followed by the number sign. To access via audio webcast please go to
the "Investor Zone" section of www.loblaw.ca. Pre-registration will be
available. For full details please visit our website at www.loblaw.ca.





For further information:

For further information: Inge van den Berg, Vice President, Public
Affairs & Investor Relations, (905) 459-2500, investor@loblaw.ca/


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