Loblaw, which sells everything from grocery to wireless mobile products, forecast 2017 capital expenditure to be at about C$1.3 billion ($989.27 million), slightly higher than the C$1.2 billion it spent in 2016.

The company's revenue rose 2.4 percent to C$11.13 billion in the fourth quarter, beating the average analyst estimate of C$10.98 billion, according to Thomson Reuters I/B/E/S.

Sales in the retail busines, the company's biggest, rose 2.3 percent to C$10.8 billion.

Net earnings available to common shareholders increased to C$201 million, or 50 Canadian cents per share, in the fourth quarter, from C$128 million, or 31 Canadian cents per share, a year earlier.

On an adjusted basis the company earned 97 Canadian cents per share, in line with estimates.

($1 = C$1.31)

(Reporting by Komal Khettry in Bengaluru; Editing by Maju Samuel)