Former employees speak out about Value Village’s pricing system and why it’s costing consumers
The pet food dish on the left was purchased from Value Village for $4.49. The seemingly identical pet food dish on the right was purchased for $2 from Dollarama. (Jenny Cowley/CBC News)
After an onslaught of viral posts showing Value Village pricing items higher than they retail for new, Marketplace connected with more than a dozen current and former employees, many who say the chain’s pricing practices are based on a system that often charges consumers more than what an item is worth.
Employees say clothing would be ranked by brand and quality, with a computer setting a predetermined price. In some cases, that computer system suggested prices for home goods that were higher than what the product could be sold for brand new.
Multiple employees tell Marketplace they were instructed to remove or cover up original price tags so they could price items higher. Others describe daily quotas to assess and then price around 2,000 items a day, and say they were reprimanded for failing to do so.
Marketplace found a number of items for sale at Value Village that were priced higher than what they cost new at other popular retailers.
For example, a George tank top with original hang tags was selling at Value Village for $5.49. The original price had been removed, however, the team found the same tank top in a different colour at Walmart for just $5.
“Absolutely egregious,” said Markus Giesler, a consumer sociologist. He noted that it’s particularly unfair to expect low-income shoppers to pay more for items under the guise of getting a good deal.
Giesler was also concerned about how these pricing examples impact consumers who chose to shop at thrift stores for sustainability reasons.
“This is the kind of material experience that consumers have every day where cynicism builds up and they say, ‘You know what? Why should I care about sustainability if I’m constantly being misled and deceived by capitalism?’ ” he said.
Value Village did not respond to Marketplace’s request for an on-camera interview, but previously told CBC News that their goal is to provide great value and selection. They admitted their staff “might not always get it right,” but they said they invite customers to chat with a manager if they think something has been mispriced.
Giesler argues customers shouldn’t have to be responsible for ensuring Value Village’s items are priced fairly. “We as consumers are navigating and juggling a whole lot of different responsibilities under time [and] resource constraints … we are not supercomputers.”
You can watch the full Marketplace investigation, “What’s the deal with Value Village?” plus an investigation into food additives anytime on Youtube and CBC Gem.
It’s banned in Europe, so why is this controversial ingredient allowed in foods here?
Marketplace ordered snacks from Europe that are also sold in Canada to see how the synthetic additives differ. (David MacIntosh/CBC News)
A CBC Marketplace investigation found some food manufacturers are producing snack foods for the Canadian market that contain an ingredient banned in Europe.
That additive, titanium dioxide, was banned in the European Union after a May 2021 European Food Safety Authority (EFSA) review couldn’t rule out that it may cause DNA or chromosomal damage in humans.
“What we concluded was that we could not really exclude the possibility that titanium dioxide can damage the DNA material, the genetic material in the cells,” Camilla Smeraldi, team leader for EFSA’s food additive and flavourings team, told Marketplace in an interview from her office in Parma, Italy. “It’s not something that we should intentionally add to foods.”
Marketplace ordered some popular internationally sold snack foods from Europe to see how the ingredients differ from what’s being sold in Canada.
The team found manufacturers are making different versions of the same snacks — one for sale in Canada and the other in Europe.
The order included Skittles Fruits, Nerds Fruits, Nerds Gummy Clusters Rainbow and chocolate M&Ms. There is no titanium dioxide in the versions ordered from Europe, but the additive is in the snacks sold to Canadians.
Health Canada published a review of titanium dioxide studies in June 2022, which found there is no conclusive scientific evidence that the food additive is a concern for human health.
Marketplace asked the manufacturers why they don’t sell titanium dioxide-free versions of these snacks in Canada like they do in Europe.
Mars Wrigley, the company that makes Skittles and M&Ms, said all of its products “are safe and manufactured in compliance with strict quality and safety requirements established by food safety regulators.”
The maker of the two Nerds products, Ferrara Candy Company, said it complies “with all laws and regulations related to our products and will continue to do so in the future,” and uses ingredients that “are safe to consume.” Read More
You can watch the full investigation anytime on Youtube and CBC Gem.
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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
