News Briefs

04/04/2022

Dollarama says its new $5 price tag will help offset inflation and stock new products

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Canada's largest dollar store is introducing a new $5 price tag as it looks to recoup higher costs and bring in new products.

Dollarama Inc. said Wednesday the roll out of additional price points up to $5 will help the retail chain maintain and enhance its product assortment and value.

"There will be a gradual ramp up starting mid-year and becoming more noticeable through the second half of the year,'' Neil Rossy, Dollarama president and CEO, said during a call with analysts. "This brings additional flexibility to manage cost pressures in a heightened inflationary environment.''

But the store is "extremely sensitive to this not simply being a markup tool,'' he added.

"It enables us to deepen our broad and compelling product assortment,'' Rossy said. "It allows us to bring in goods that we've never been able to buy because they weren't in our price range.''

His comments came as the retailer raised its dividend and reported its fourth-quarter profit and sales rose compared with a year ago.

Dollarama hiked its quarterly dividend by 10% to 5.53 cents per share, up from 5.03 cents per share.

The company reported a profit of $220 million or 74 cents per diluted share for the quarter ended Jan. 30 compared with a profit of $173.9 million or 56 cents per diluted share a year earlier.

Sales totalled $1.22 billion, up from $1.1 billion in the same quarter last year, helped by an increase in the number of stores and a 5.7 per cent uptick in comparable store sales.

Looking forward, Dollarama said it expects to benefit from a more upbeat sales environment in the coming months compared with the same period last year when pandemic restrictions limited non-essential shopping.

However, the company cautioned that supply chain and other inflationary pressures are expected to be felt more this year.

"Our procurement and logistics teams have been working relentlessly to ensure that stores are well-stocked, especially from a seasonal perspective,'' Rossy said.

The challenge isn't supply but rather getting goods into Dollarama's warehouses and on store shelves, he said.

"The supply is really very stable,'' Rossy said. "It's more a question of logistics challenges between the supply and the store and that involves mostly overseas challenges and port challenges (and) a little bit of trucking challenges.''

Still, Dollarama has an ample buffer built into its business model, which means even if seasonal products arrive at the company's warehouses later than usual they will still hit store shelves on time, he said.

"We can cover these issues and mitigate those risks better than most,'' Rossy said.

Meanwhile, Dollarama said it expects its new warehouse in Laval, Que., to open by the end of its current fiscal year, increasing its storage capacity and supporting its long-term target of 2,000 stores in Canada by 2031.

Dollarama opened 24 net new stores in the quarter, for a total of 1,421 stores at the end of January.

04/04/2022

Experts say masks still a top tool as Quebec considers prolonging mandate

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MONTREAL - As Quebec ponders bucking the Canadian trend by prolonging its mask mandate, experts say face coverings are still an effective tool to limit COVID-19 transmission.

Currently only Quebec, PEI and Nunavut still require masking in public places, with the latter two scheduled to end their mandates within the next week.

Quebec's interim public health director told Radio-Canada on Sunday that as the province battles a sixth wave of COVID-19, he is "seriously considering'' recommending that masking remain mandatory beyond the planned mid-April end.

Other provinces have resisted calls to prolong or reimpose public health restrictions, even as cases have risen in some parts of the country.

Ontario Premier Doug Ford said today that his province, which has seen a one-week, 30% rise in hospitalizations, can manage what he described as a "little spike'' in COVID-19.

McGill chemistry professor and aerosols expert Parisa Ariya says that while masking cannot fully stop a COVID-19 wave, it remains one of the best defences to cut transmission and protect the wearer and those around them.

-The Canadian Press

03/23/2022

Payment Source named Most Empowering Payment Solutions Enterprise in 2022 Canadian Business Awards

Payment Source was named Most Empowering Payment Solutions Enterprise in the 2022 Canadian Business Awards.

“We’re thrilled that our mission to provide payments choice, convenience and speed for all Canadians continues to be recognized through industry distinctions,” said Robert Hyde, CEO at Payment Source. “As payment preferences have been accelerated towards digital, our team is dedicated to providing alternative payment solutions that enable more equal opportunity for Canadians to engage in the economy to meet their daily needs.”

Commenting on the sixth annual Canadian Business Awards, awards coordinator, Steve Simpson, stated, “I am delighted to be a part of another successful run of the Canadian Business Awards program, and it has been a delight to liaise with all the winners of this year. I would like to congratulate them and wish them all the best for their future endeavours!”
 

03/22/2022

Retail sales rose 3.2% in January amid Omicron surge: Statistics Canada

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Retail sales rose 3.2% to $58.9 billion in January, even with public health restrictions in several parts of the country to deal with the Omicron surge in COVID-19 cases at the start of the year, Statistics Canada said Friday.

However, the agency said its early estimate for February suggested retail sales fell 0.5% for that month, though it cautioned the figure would be revised.

BMO economist Shelly Kaushik said retail sales, which fell in December, posted an impressive rebound in January, despite the persistent restrictions and pandemic concerns.

"Still, it looks like activity pulled back in February, likely with some diversion into services spending as restrictions loosened in that month," Kaushik wrote in a report.

"Overall, consumer demand remains robust, even as another month of strong inflation eroded some purchasing power."

Earlier this week, Statistics Canada said the annual inflation rate for February rose to 5.7% compared with a year-over-year rise in the consumer price index of 5.1% in January.

Statistics Canada said Friday retail sales were up in nine of the 11 subsectors it tracks.

The rise in January was led by an improvement at motor vehicle and parts dealers which gained 5.3% helped by a 5.5% increase at new car dealers and a 9.7% rise at used car dealers. Sales at gasoline stations were unchanged in January.

Excluding motor vehicle and parts dealers and gasoline stations, retail sales rose 2.9%.

Sales at building material and garden equipment and supplies dealers gained 8.9%, while sales at food and beverage stores rose 2.2%.

Clothing and clothing accessories stores saw sales fall 3.5%.

In volume terms, overall retail sales rose 2.9% in January.

03/11/2022

Canadian Tire unveils $3.4 billion plan to improve customer experience, drive growth

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Canadian Tire Corp. has announced a multi-billion dollar plan to improve customer service and bolster sales.

The retailer, which operates several banners including Canadian Tire, SportChek and Mark's, says the $3.4-billion investment will "bolster omnichannel capabilities'' and drive long-term growth.

The company says the investment will help improve customer experience across its online and brick-and-mortar stores while growing its loyalty program.

Canadian Tire says it will also strengthen its supply chain fulfilment infrastructure and automation and modernize its information technology infrastructure.

Chief executive Greg Hicks says the investments will improve customer experiences, create jobs and help drive local economies.

The announcement was made as Canadian Tire kicked off its virtual investor day, where the company's leadership team are expected to provide further details on the plan.

"The future will belong to retailers who can provide the most seamless experience across digital and physical channels,'' Hicks said during his opening remarks Thursday.

"We'll create a seamless omnichannel experience that is unified across our portfolio of retail banners, products and services.''

03/09/2022

7-Eleven Japan pilots holographic self checkout kiosks

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holographic check out.

7-Eleven Japan is running a pilot trial at six stores in Tokyo, using contactless self-checkout kiosks with holographic displays. 

The holographic displays are equipped with Neonode's Touch Sensor Modules, which make it possible to interact with the images projected by the holographic displays mid-air, in a similar way to a normal touch display. 

Demand for contactless shopping has surged during the coronavirus pandemic and these new holographic self-checkout kiosks tap into the trend, accepting only including credit cards, e-money cards and QR codes. Plus, they take up about 30% less space than existing cash registers, leaving more space for product displays.

"We are pleased and excited to see this initiative, where our technology is simplifying and enhancing the customer experience and making the interaction with the underlying device or system safer, more hygienic, and more convenient to use, which further emphasizes the importance of Neonode's contactless touch technology in the retail segment," said Urban Forssell, CEO of Neonode.