Feb 20 (Reuters) - Canadian retailer Loblaw Companies ( LBLCF )

on Thursday forecast annual profit below Wall Street

estimates, on signs of weak demand for discretionary items such

as home appliances and furniture.

The company forecast adjusted net earnings per share growth

in the high single digits, below expectations of 11.16% growth,

according to data compiled by LSEG.

The retailer would invest C$2.2 billion this year to

renovate existing stores and open new outlets, which would

create about 8,000 jobs, it said earlier this week.

For the fourth quarter, Loblaw ( LBLCF ) also fell slightly short of

analysts' estimates for sales and profit, hurt by weak demand

for apparel, as well as pricier products such as kitchen

appliances and furniture.

Loblaw's ( LBLCF ) results reflect weak consumer spending in the

country. Canadians reportedly spent less on groceries, beverages

and furniture during October and November, according to data

from Statistics Canada.

High living costs and mortgage rates have shrunk disposable

incomes of Canadians, affecting retailers of essential goods

such as Loblaw ( LBLCF ).

Loblaw's ( LBLCF ) quarterly revenue rose 2.9% to C$14.948 billion

($10.52 billion), compared with analysts' average estimate of

C$14.954 billion, according to data compiled by LSEG.

The company earned C$2.20 per share for the quarter

ended December 28, missing expectations of C$2.21 per share.

($1 = 1.4213 Canadian dollars)