FILE PHOTO: A sign for Loblaws in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo

(Reuters) -Loblaw raised its annual profit forecast after beating third-quarter profit estimates on Wednesday, as the Canadian retailer bet on demand for grocery and medicines at its discount stores to remain resilient amid economic uncertainties. The retailer's focus on discount banners such as Maxi and No Frills and value-driven programs like keeping prices low and rolling out aggressive promotions has helped attract more budget-conscious Canadians.

Quarterly same-store sales at its food retail segment rose 2%, while in drug retail they increased 4% from a year ago.

Retailers are also benefiting from the "Buy Canadian" movement sparked by trade disputes between the country and the U.S., as consumers switch to locally made goods, leading to a dramatic reshuffling of shelves at stores in Canada.

Loblaw now expects annual adjusted net earnings per share growth to increase slightly in the low double-digit percentage range, compared with its prior forecast of high single-digit percentage growth. In October, U.S. President Donald Trump said he was increasing tariffs on Canada by an additional 10%, but did not provide clarity on which goods would be affected.

Two months earlier, the Trump administration had imposed a 35% tariff on Canadian goods not covered by the United States-Mexico-Canada Agreement.

Canadian retail sales rebounded in August as shoppers splurged on new cars, clothing and at supermarkets, according to data from Canada's national statistics agency.

Loblaw posted quarterly revenue of C$19.40 billion ($13.83 billion), in line with analysts' estimates, as per data compiled by LSEG.

It also earned adjusted profit of 69 Canadian cents for the reported quarter, compared with estimates of 68 cents per share.

($1 = 1.4024 Canadian dollars)

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Leroy Leo)