(Reuters) -Canadian retailer Loblaw exceeded analysts' expectations for first-quarter revenue and profit on Wednesday, driven by robust demand at its pharmacy stores and discount banners, Maxi and No Frills, for everyday essentials.

Consumers in Canada have become more wary with their spending as U.S. President Donald Trump's tariffs have increased worries about rising inflation that could further tighten household budgets.

Canada's retail sales shrank faster than anticipated in January. The country's central bank has forecast that consumer spending will drop and GDP will be hit as Canadian businesses and consumers deal with a wave of tariffs from the Trump administration.

This has pushed people to look for lower-priced items, boosting demand at Loblaw's discount banners which offer everything from fruits to household items.

The Canadian supermarket chain also enjoyed strong demand for cosmetics and saw growth in pharmacy sales due to an extended cold and flu season, which helped offset an exit from certain low-margin electronic products.

Same-store sales at the company's food retail segment rose 2.2% in the first quarter, while comparable sales at its drug retail unit increased 3.8%.

Loblaw still continues to see tight spending on discretionary items such as home appliances and furniture, which analysts have said would take long to recover.

The company's revenue rose 4.1% to C$14.14 billion ($10.22 billion) in the first quarter, compared with the average analyst estimate of C$14.07 billion, according to data compiled by LSEG.

On an adjusted basis, Loblaw earned C$1.88 per share, topping expectations of C$1.87.

The company reaffirmed its annual adjusted net earnings per share forecast of high single-digit percentage growth.

($1 = 1.3829 Canadian dollars)