Update Statement Concerning Bangladesh Building Collapse

05/03/2013

We continue to express our condolences to those affected in Savar, Bangladesh and we are deeply saddened by this tragedy. Our priorities are helping impacted employees and their families, and driving change to help prevent similar incidents like this in the future.

Joe Fresh Creative Director Joe Mimran and Loblaw Chairman Galen Weston are committed to these three immediate steps to address the issue of worker safety. These include:

• A relief fund for victims and their families to provide support now and in the future;

• A new standard at Loblaw, ensuring all of our control brand products are made in facilities that respect local construction and building codes; and

• A commitment to have Loblaw people on the ground who will report directly to us to ensure that the product that we produce is made in a manner that reflects our values.

We’ve engaged with a number of organizations including the Retail Council of Canada, NGOs, and international audit companies to gain input into potential solutions. We are sending senior Loblaw Companies representatives to Bangladesh to meet with local officials and organizations as part of our commitment to address the issue of working safety.

Loblaws Inc. vendor standards are designed to ensure that products are manufactured in a socially responsible way, for a safe and sustainable work environment. Our audits align with those of industry around the world, but we recognize that these measures do not address the issue of building construction or integrity. Loblaw is committed to finding solutions to this situation by expanding the scope of our requirements to ensure the physical safety of workers producing our products.

Please be assured we are taking steps to drive change, and to finding solutions to ensure safe working conditions at the production facilities with which we do business.