Innovation is one of the many strengths of Loblaw, most clearly exhibited by its exciting control label offerings. Through ongoing innovation, the Company concentrates on being the best at making healthy living affordable to all Canadians and, in larger stores, providing general merchandise and financial services that offer customers a great one-stop shopping experience for all their daily household needs.

2006 Progress

• Launched Joe Fresh Style in April 2006 with positive consumer response, including selling over 200,000 basic T-shirts since launch
• Developed and distributed a record six issues of the Insider’s Report to keep customers informed about exciting new products and services.
• Over ten million homes in Canada received the Insider’s Report this year
• Over 2,000 new control label products launched

2007 Expectations

• Control label initiatives will be at the heart of Loblaw’s culture of innovation
• Increase new control label product launches and remove underperforming items
• Expand Joe Fresh Style into children’s clothing and accessories
• Intensify innovation of President’s Choice products, including President’s Choice Blue Menu as a leading line of consumer-friendly, healthy foods