Kelly Ernst recalls standing on sidewalks, waving to needy families in Calgary’s northeast as they opened their doors to pick up food hampers.
Ernst, vice-president for vulnerable populations at Calgary’s Centre for Newcomers, said the memory speaks to how COVID-19 hurt the community, socially and economically.
Ernst said the Skyview Ranch neighbourhood is one of the most diverse in the country, with a high proportion of visible minorities and newcomers. Residents are often employed in precarious retail jobs or in warehouses, Ernst said. Others work at the city’s airport or in the municipal transit system, both of which were also affected by the pandemic.
“Some of the first people to be laid off during the downturn were people in these precarious jobs,” Ernst said, adding many were left looking for “some way to get through this whole thing.”
Almost seven in every 10 residents over age 15 in Skyview Ranch, received the Canada Emergency Response Benefit in the initial month that the pandemic aid was available, one of the highest concentrations among over 1,600 neighbourhoods The Canadian Press analyzed.
Federal data, obtained through the Access to Information Act, provides the most detailed picture yet of where billions of dollars in emergency aid went last year.
The data is broken down by the first three characters of postal codes, known as “forward sortation areas,” to determine the number of active recipients at any time anywhere in the country.
The Canadian Press used population counts from the 2016 census to calculate what percentage of the population over age 15 in each forward sortation area received the CERB in any four-week pay period.
Some forward sortation areas in the data from Employment and Social Development Canada were created after the 2016 census and weren’t included in the analysis.
Initial wave saw a largely rural-urban split
Over its lifespan between late March and October of last year, the CERB paid out nearly $82 billion to 8.9 million people whose incomes crashed because they saw their hours slashed or lost their jobs entirely.
Some three million people lost their jobs in March and April as non-essential businesses were ordered closed, and 2.5 million more worked less than half their usual hours.
The data from Employment and Social Development Canada show that 6.5 million people received the $500-a-week CERB during the first four weeks it was available, or more than one in five Canadians over age 15.
What emerges from that initial wave is a largely rural-urban split, with higher proportions of populations relying on the CERB in cities compared to rural parts of the country.
Neighbourhoods in Brampton, Ont., on Toronto’s northwest edge, had the largest volume of CERB recipients with postal-code areas averaging over 15,160 recipients per four-week pay period.
CERB usage also appears higher in urban areas that had higher COVID-19 case counts, which was and remains the case in Calgary’s northeast.
“As cities relied more on accommodations, tourism and food as drivers of economic growth, the more they would have been sideswiped by the pandemic, and larger centres have a higher concentration of jobs in these areas,” said David Macdonald, senior economist at the Canadian Centre for Policy Alternatives, who has studied the CERB.
“More rural areas of the country and certain cities that have a higher reliance on, say, natural resources wouldn’t have been hit as hard.”
George Chahal, a city councillor, said Calgary’s northeast has faced a number of challenges. (Jeff McIntosh/The Canadian Press)
In Skyview Ranch, census data says 12 per cent lived below the poverty line in 2016, and about three in 10 owners and four in 10 renters faced a housing affordability crunch, meaning they spent 30 per cent or more of their incomes on shelter.
Many live in multi-generational households, which the local city councillor said caused additional concerns about students and working adults spreading the virus to grandparents.
“These are real worries and challenges that members of my community have been facing throughout a pandemic,” said Coun. George Chahal.
“The CERB program and the additional support to small businesses was a huge relief for the fear with many folks in my ward.”
The CERB program paid out $500 per week for people whose incomes had fallen to nothing as a result of the pandemic. The federal Liberals amended the program in April to set a monthly income threshold of $1,000.
Ontario town had the highest average number of residents accessing CERB
At the outset, there were 6,520 residents of Skyview Ranch on the CERB, about 69.4 per cent of the population 15 and up.
Then things improved. Businesses reopened and workers were rehired. The decline in the program’s use in Calgary’s northeast mirrored a nationwide drop in recipients overall, even though there were local increases here and there.
In all, there were 4.4 million recipients in the CERB’s second month, the biggest month-to-month change, 3.7 million in the third, and a steady decline to almost 2.3 million recipients by the time the CERB was replaced by a trio of new recovery benefits and a revamped and restarted employment-insurance system.
Over the lifetime of the CERB, the Ontario town of East Gwillimbury had the highest average number of residents accessing the program, at 24 per cent. The town with the lowest percentage was Winkler, Man., at 3.83 per cent.
In Skyview Ranch, the number of recipients in the last month of the CERB stood at 2,440, or about one-quarter of those over age 15.
There is still hardship in Skyview Ranch. The area has seen a spike in COVID-19 cases and incomes have dropped again as restrictions rolled in through December, part of a wider drop in the national labour market.
Chahal said there still is a need in the area for government aid like the federal recovery benefits.
“Maybe not for everybody,” he said, “but there are going to be a lot of folks who are going to be in need of assistance in the upcoming months as we move from this stage of the pandemic (and) into economic recovery.”
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.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
