At a school in Moncton, N.B., the doors to the gymnasium opened at 9 a.m. sharp on Aug. 19. Inside, students, parents and community members were greeted by a spread of second-hand clothes, backpacks, shoes, boots and books. Music played over the speaker; kids were in high spirits.
Queen Elizabeth School was hosting its first-ever back-to-school shop, an initiative spearheaded by vice-principal Kyle Bishop and the owner of a local consignment store in nearby Riverview, N.B., called Ready, Set, Grow.
The shop gave families a chance to choose from donated items ahead of the first day of school — without paying a cent.
“Our parents do the best that they can with the reality that they have,” Bishop said, adding the school has a large newcomer population. “And so when this opportunity came up, I just thought of all the families that this could benefit immensely.”
As inflation continues to put pressure on the cost of just about everything — from food to clothes to school supplies — Canadians across the country are preparing for the back-to-school season by turning to second-hand options as a way to save money.
Students select backpacks at a back-to-school-event at North Central Family Centre in Regina last week. Free backpacks and school supplies were offered following a donation drive. (Adam Bent/CBC)
In a questionnaire from NerdWallet, a personal finance company, 27 per cent of respondents said they will spend less on school supplies this year compared with previous years due to inflation, while 20 per cent said they had plans to purchase or buy back-to-school items second hand.
Conducted by the Harris Poll, the survey included 303 Canadian adults and is considered accurate within 6.4 per cent.
“It was a good way to start the school year, regardless of anything,” Bishop said. “Just to have teachers and the administration talk with parents, see the kids that we haven’t seen in a couple months, see if they’re excited for school.”
‘Everyone’s really feeling the pinch’
As parents across the country say they’re struggling with back-to-school costs, community organizations are trying to meet a demand that is outpacing donations.
One Calgary organization said the demand for backpacks jumped by 76 per cent this year, while the founder of a charity that operates across Newfoundland and Labrador said more than 260 people have registered — and 200 more are on a waiting list — for the organization’s back-to-school necessities program.
A line snaked outside the entrance to the Cape Breton Regional Library in Sydney, N.S., one morning last week, as the branch hosted its first kids’ “clothing swap” — where a donation gets you a shopping voucher.
On this particular day, that criteria didn’t apply, as parents and children rummaged through clothes before the beginning of the school year.
Sydney resident Natasha Kinslow, who was there with her son, said affordability has been extra challenging this year.
“Everything costs a lot. It’s overpriced. Everything. Especially being a single mom, it’s hard,” Kinslow said, adding that the clothing swap likely saved her a lot of money.
Jannette Vusich, assistant regional program co-ordinator at the Cape Breton Regional Library in Sydney, N.S., organizes donation inventory during a ‘clothing swap’ for kids last week. (CBC)
Jannette Vusich, assistant regional program co-ordinator at the library, previously organized two adult clothing swaps thanks to demand from patrons. More than 300 people attended those events, she said.
Vusich said the library received hundreds, possibly thousands, of donated items.
“There were kids with every parent, and they were going through and finding their own clothes — and they were very excited to show us the cute things they found,” she said.
“Everyone’s really feeling the pinch, and people have been telling us how excited they are to have this option available,” Vusich said, noting that library patrons and other non-profits that the library works with have stressed the financial pressures Canadians are facing.
WATCH | How to deal with back-to-school costs in this economy:
Grappling with back-to-school expenses in a tough economy
19 days ago
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The rising cost of everything is forcing some families to make difficult choices, and school supplies are just adding to the troubles. Even charitable organizations have been forced to cut back.
Vusich said she thinks there’s been a gradual shift away from the stigma of poverty and that events like the one held at the library help because the whole community participates.
Thrifting has become trendy, especially among teenagers, she said, and people are generally looking for more sustainable alternatives to fast fashion — where cheap clothes are mass produced quickly and then discarded.
“I think everyone is taking home $100, $150 worth of clothing, and we really hope it helps our community with their back-to-school needs,” Vusich said.
Changing attitudes toward buying second hand
The mentality toward second-hand shopping has changed significantly over the last few years — “not just because people are looking to save money, but people want to recycle,” said Barry Choi, a Toronto-based personal finance expert.
“Anyone who’s got young children realize they grow so quickly, so why buy these [new] clothes that they’re just going to outgrow within a few months?”
Toronto-based personal finance expert Barry Choi said that his top recommendation to parents is to make a list before shopping for back-to-school clothes and supplies. (CBC)
For families who are shopping for back-to-school items, Choi said his No. 1 recommendation is to make a list beforehand and ensure you don’t already have the things your child says they need.
“The last thing you want is to show up at the store. You start shopping, you and your spouse [are] like, ‘Oh, do we need this or do we need this, do we need that?’ And you end up buying all these things that you already have.”
For Bishop, the vice-principal in Moncton, the back-to-school shop is just one way that the school can help its community during times of financial duress.
The school also partners with other community organizations to host a school supplies drive, as well as breakfast and lunch programs. It’s hoping to turn the back-to-school shop into a seasonal event.
“Kids go [to school] to learn. That’s extremely important,” Bishop said.
“But we are part of the community and we support the community, not just in academics but in all facets of a child’s life.”
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.
