A Canadian retail chain that made its name by selling things for a dollar is raising some of its prices to $5.
In its quarterly results on Wednesday, famously cost-conscious Montreal-based retailer Dollarama showed it is not immune to the inflationary pressures that every part of the economy is feeling right now by revealing it soon plans to sell items that cost up to $5.
At present, the most expensive items the chain sells cost $4, and most cost less than that.
“This will enable the corporation to maintain and enhance its broad product assortment and compelling value,” the company said.
For low-income Canadians like Amber Cannon of Calgary, Dollarama is more than just a discount store; it’s a grocery store, too.
Amber Cannon, a Calgary resident who relies on disability benefits, says she’s worried people will need to forgo meals as food insecurity becomes a growing problem. (Colin Hall/CBC)
Cannon, who has celiac disease and receives disability benefits, says she relies on Dollarama for a range of products, including any gluten-free items that are available.
As prices continue to rise in discount stores and elsewhere, Cannon says she’s worried for those in similar or worse financial circumstances than her.
“I’m concerned that more and more people will go without meals,” she said, adding that she’s had to forgo meals to make ends meet.
Meaghon Reid, executive director of anti-poverty group Vibrant Communities Calgary, says her organization estimates that at least one in 10 Calgarians live in poverty.
How a $1 increase in prices could impact people living in poverty
5 hours ago
Duration 0:46
Meaghon Reid, executive director of anti-poverty group Vibrant Communities Calgary, explains how even a small rise in prices could seriously impact budgeting for those living in poverty. 0:46
And for them, even a $1 increase in prices could have a devastating impact.
“To a person living in poverty, it can spell the difference between a meal that night, the difference between making your rent that month, the difference between being able to even transport your child to school,” she said.
Dollarama to pay out higher dividend as profits rise
The company, which has 1,421 stores across Canada, said that while the Omicron variant of the novel coronavirus hit its business hard over the busy holiday shopping season, on the whole it fared comparatively well — with sales of $1.22 billion, up from $1.1 billion this time last year, and a quarterly profit of $220 million, up from $173 million a year ago.
This was achieved “while navigating the ebb and flow of the pandemic’s impacts on retailers and consumer shopping patterns and in the context of supply chain and inflationary pressures,” Neil Rossy, Dollarama’s president and CEO, said in a statement.
In the coming months, the company says it expects to benefit from a positive sales environment compared with the same period last year. However, it cautioned that supply chain and other inflationary pressures are expected to be felt more this year.
While the company benefited from opening 24 new stores during the quarter, existing stores also saw higher sales, with same-store sales growth clocking in at 5.7 per cent across the chain.
The company says its total volume of transactions rose by more than 10 per cent in the quarter, even as the average customer bill shrank by four per cent. That suggests customers were shopping more frequently but buying less with each store visit.
The strong financial performance gave the chain the confidence to hike its dividend to shareholders by 10 per cent. Starting now, it will pay out 5.53 cents per share, up from 5.03 cents per share previously.
Not the first time chain has increased price cap
This certainly isn’t the first time Dollarama has increased its price cap on the products it sells.
While the chain once did sell goods for $1 or less, that all changed in 2009, when it added products at price points of $1.25, $1.50 and $2.
Doug Stephens, the founder of consulting agency Retail Prophet, says the recent news is part of a trend where dollar stores are offering a larger range of products and even venturing into clothing and small appliances.
“The question on the minds of dollar store executives is how do you continue to grow if you’re putting a cap on your top price?” he said.
Retail futurist and author Doug Stephens says dollar stores have been expanding the range of products they offer for years in response to a growing appetite and need for cheap goods. (Doug Stephens/YouTube)
The move from Dollarama is a response to consumers increasingly looking for cheaper products, Stephens said, adding there still aren’t many players competing on price with dollar stores.
“They still are remarkably cheap,” Stephens said.
However, the expansion of dollar stores into more product categories also reflects how income and wealth polarization are forcing more Canadians to rely on dollar stores for their consumer needs.
“That has given dollar stores the license now to move into higher-priced categories of goods,” he said.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
