Â鶹´«Ã½

Business

    • Dollarama keeping an eye on competitors as Loblaw launches new ultra-discount chain

    Share

    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 down 2.2 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.

    CTVNews.ca Top Stories

    A Manitoba man convicted of murder 50 years ago has been acquitted. Clarence Woodhouse was found guilty in 1974 of fatally beating and stabbing a restaurant worker in downtown Winnipeg.

    A health official has confirmed a child in Ontario has died after they came in contact with a rabid bat.

    An Ontario family was planning a religious trip to Saudi Arabia that included 10 people, but when they were checking in for their flights, the family discovered some of their tickets were fake.

    A Toronto police officer convicted of stealing from deceased individuals he was supposed to be investigating has been sentenced to seven years in prison.

    Canada

    • The Supreme Court of Canada says it will hear a challenge from the Quebec government to a lower court ruling granting asylum seekers access to subsidized daycare spaces.

    • A Manitoba man convicted of murder 50 years ago has been acquitted. Clarence Woodhouse was found guilty in 1974 of fatally beating and stabbing a restaurant worker in downtown Winnipeg.

    • An increasing number of Ontario school boards are reporting deficits and are using or even depleting their reserves, according to internal Ministry of Education briefing documents.

    • A Toronto police officer convicted of stealing from deceased individuals he was supposed to be investigating has been sentenced to seven years in prison.

    • A health official has confirmed a child in Ontario has died after they came in contact with a rabid bat.

    World

    Politics

    Health

    Sci-Tech

    Entertainment

    Business

    Lifestyle

    • What does New Westminster's tÉ™mÉ™sewÌ“txÊ· Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.

    Sports

    Autos

    • A Pickering, Ont., student going to college to be a mechanic is shocked the engine in his two-year-old car will not be repaired under warranty after the dealership claimed he had been 'over-revving' the engine.

    • Canadian-made Chrysler Grand Caravans have seen sales jump over the third quarter and calendar year. According to FCA Canada, sales were up by 79 per cent this quarter and up 85 per cent for the calendar-year to date.

    Local Spotlight

    The grave of a previously unknown Canadian soldier has been identified as a man from Hayfield, Man. who fought in the First World War.

    Moving into the second week of October, the eastern half of Canada can expect some brisker fall air to break down from the north

    What does New Westminster's təməsew̓txʷ Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.

    The last living member of the legendary Vancouver Asahi baseball team, Kaye Kaminishi, died on Saturday, Sept. 28, surrounded by family. He was 102 years old.

    New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.

    On Saturday night at her parents’ home in Delaware, Ont. the Olympic bronze medallist in pole vault welcomed everyone who played a role in getting her to the podium in Paris.

    A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.

    When a group of B.C. filmmakers set out on a small fishing boat near Powell River last week, they hoped to capture some video for a documentary on humpback whales. What happened next blew their minds.

    A pizza chain in Edmonton claims to have the world's largest deliverable pizza.

    • No injuries were reported after a fire tore through an abandoned home in Vancouver's Kerrisdale neighbourhood early Thursday morning.

    • New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.

    • B.C. NDP Leader David Eby will announce his party's full action plan at an event in Surrey Thursday.

    • More sexual assault charges have been filed against billionaire Frank Stronach with the Canadian businessman now facing a total of 18 charges.

    • A Toronto police officer convicted of stealing from deceased individuals he was supposed to be investigating has been sentenced to seven years in prison.

    • An Ontario family was planning a religious trip to Saudi Arabia that included 10 people, but when they were checking in for their flights, the family discovered some of their tickets were fake.

    • A park in Calgary's Beltline has reopened after undergoing a redesign.

    • Police discovered an elaborate underground encampment in southeast Calgary earlier this month.

    • A Calgary shooting range, which has been in operation for almost 25 years, has closed.

    • A 37-year-old Ottawa business owner is facing charges after a woman was allegedly sexually assaulted while applying for a job, according to police.

    • OC Transpo will be providing an update today on the Trillium Line LRT, including an anticipated start date for trial running.

    • Days after Hurricane Helene caused widespread destruction across multiple U.S. states, former Ottawa television host Cyndi Edwards was finally able to survey the damage at one of her Florida rental units.

    • A new study out of Montreal's Concordia University found that, if policies and trends remain unchanged, a two-bedroom in Montreal will cost $4,325 per month, a similar unit in Toronto will cost $5,600 and one in Vancouver will be around $7,750 within eight years.

    • The Supreme Court of Canada says it will hear a challenge from the Quebec government to a lower court ruling granting asylum seekers access to subsidized daycare spaces.

    • The union representing Montreal dockworkers has ended a three-day strike at two terminals as scheduled, but the potential remains for more job action and jammed supply chains in the coming weeks.

    • Alberta's nurses could soon find themselves on the picket line as recent talks with the provincial government failed to secure a new agreement.

    • Police say impaired driving resulted in a multi-vehicle crash on Wednesday.

    • The six-part "FACEOFF: Inside the NHL" docuseries debuts Friday, a behind-the-scenes sports showcase from Prime Video.

    • Federal fisheries officers in Nova Scotia say they're refusing some enforcement duties because of threats to their safety, as they await Ottawa's response to their complaints.

    • A 17-year-old boy has been charged with manslaughter in the death of a man who was assaulted in Fredericton last month.

    • A 75-year-old woman has died after she was struck by a tour bus in Charlottetown Thursday morning.

    • A Manitoba man convicted of murder 50 years ago has been acquitted. Clarence Woodhouse was found guilty in 1974 of fatally beating and stabbing a restaurant worker in downtown Winnipeg.

    • Manitoba Premier Wab Kinew continues to enjoy a honeymoon with voters one year after his NDP government was elected, but there are challenges ahead in fulfilling promises to improve health care and balance the budget.

    • A man has died and Manitoba's police watchdog is investigating after an officer-involved shooting Wednesday afternoon.

    • A Regina woman has pleaded guilty to one count of fraud after being charged with defrauding Regina Mobile Crisis Services.

    • Saskatchewan's general election campaign moved into its second day Wednesday, with the two main parties shying away from touching the provincial sales tax while an upstart conservative party promises to slash it in half.

    • A health official has confirmed a child in Ontario has died after they came in contact with a rabid bat.

    • An Olympian and retired competitive boxer have been named as the official Kitchener-Waterloo Oktoberfest keg tappers.

    • Wellington County Ontario Provincial Police (OPP) are trying to identify two vehicles as part of an arson investigation in Erin.

    • A home in Saskatoon’s Haultain neighbourhood has been left devastated following a fire early Wednesday morning.

    • A Saskatoon photographer is hoping to make some love connections through a unique blind dating. The idea came out of a need to help singles get offline and back to real in-person connections.

    • A Saskatoon-based political scientist doesn't expect Saskatchewan's provincial election to be dominated by large issues, explosive events or political fireworks prior to voting day on Oct. 28.

    • A 41-year-old from Elliot Lake is facing even more charges after behaving very badly after being arrested on outstanding warrants.

    • A 33-year-old man has been arrested after two females were found dead inside a home in Courtice, Ont. on Tuesday afternoon.

    • An Ontario family was planning a religious trip to Saudi Arabia that included 10 people, but when they were checking in for their flights, the family discovered some of their tickets were fake.

    • Around 2 p.m. on Wednesday, police, fire and EMS responded to the area of Vidal Street and Huron Boulevard for a crash between a motorcycle and a pickup truck.

    • The crash happened around 10:40 a.m. on Wednesday

    • An investigation is underway at London's safe consumption site after someone who visited the facility died.

    • An Aurora, Ont. man who has maintained his innocence despite being convicted of killing his wife will learn his fate in a Newmarket courtroom on Wednesday.

    • Smoke alarms alerted apartment occupants of a kitchen fire below.

    • Ward 1 Councillor Clare Riepma will be docked 15 days' pay and was sternly reprimanded for violating the City of Barrie's code of conduct on two separate occasions.

    • The Windsor Police Service (WPS) has issued an arrest warrant for a suspect in a break-and-enter investigation following the arrest of two others.

    • A multi-vehicle collision on the Ouellette Avenue overpass impacted morning commuters heading to downtown Windsor on Thursday morning.

    • New research from GreenShield shows one in three Canadians would quit their job for better mental health benefits.

    • The moment the writ was dropped for the Oct. 19 election, candidates all over B.C. began putting up campaign signs. By the following day, many of those signs had already been stolen or vandalized, and that’s continuing today.

    • DoorDash is increasing fees in British Columbia in response to recently passed provincial legislation.

    • A grassroots campaign to end gender-based violence has sent a letter to BC Conservative Leader John Rustad informing him it is withdrawing permission for him to wear its symbol.

    • Three young suspects have been arrested in connection with a swarming attack on a teenager in B.C.'s Okanagan last week – and authorities have asked the public to stop circulating disturbing videos of the incident.

    • A father in Kelowna is furious after his 13-year-old daughter was brutally beaten on Gyro Beach. He is calling for criminal charges in the devastating attack, which was caught on video by multiple bystanders.

    • The officer who shot and killed a forcible confinement suspect in Kamloops two years ago was justified in doing so, according to the Independent Investigations Office of B.C.

    • Hearings on a proposed coal project in Alberta's Crowsnest Pass will go ahead despite legal challenges.

    • A Lethbridge man is facing several charges after a traffic stop led to the seizure of drugs and weapons.

    • From offering two meals a week to three a day, the Lethbridge Soup Kitchen has grown immensely over the past 40 years.

    • Closing arguments have begun in the sexual assault trial of Canadian musician Jacob Hoggard.

    • City council in Sault Ste. Marie has decided to purchase the former general hospital site, with an eye on demolishing the property and selling it to a buyer serious about redevelopment.

    • A woman who has worked for Â鶹´«Ã½ Northern Ontario for 50 years was honoured Tuesday night with a lifetime achievement award.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at Â鶹´«Ã½. We may earn a commission when you use our links to shop. Read about us.

    Stay Connected
    Follow Â鶹´«Ã½