2023-09-09 20:25:00
Although Loblaws and Dollarama are not direct competitors – one being a discount store and the other a grocery chain – CTV News visited a Dollarama and a Loblaws in downtown Toronto to compare and contextualize the prices in the two stores. In some cases, Loblaws prices were more than twice those of Dollarama. And in some cases, the price difference is even more striking.
This text is a translation of an article from CTV News.
1 – Pasta
The most striking price difference between Dollarama and Loblaws was the cost of pasta.
At Dollarama, a bag (450 g) of Italpasta spaghetti has a price of $1, while the identical product at Loblaws is sold at $4.49, more than four times more expensive. That said, Loblaws also sells 2.27 kg of the same spaghetti for $7.99.
“You can look at this in two ways. “There’s an advantage for people who buy in larger quantities, or you might say there’s a disadvantage for people who can’t afford to spend as much every time they go shopping.” said Mike von Massow, a food economist at the University of Guelph.
Dollarama – $1
Loblaws – 4,49 $
2 – Rice
The same principle applies to the price difference for rice.
Ben’s Original Rice at Dollarama costs $1.75, but only contains 132g, slightly more than an average serving.
The same product at Loblaws costs $4.49 for one bag, $9.99 for three bags or $10.49 for 2.2 kg.
“There are definitely good opportunities if you put more items in your cart, but that can create a barrier for people who are living paycheck to paycheck,” von Massow reiterated.
Dollarama – $1.75
Loblaws – 4,49 $
3 – Bread
A loaf of Wonder bread (675 g) costs $2.50 at Dollarama. The same product at Loblaws costs $3.99 for a loaf or $7 for two loaves.
Obviously Wonder bread at Dollarama is cheaper, but Loblaws competes with their store brands. For example, the original Sans Nom bread costs $2.79 for a loaf (675 g), just a few cents more than Wonder bread at Dollarama.
“Dollarama doesn’t have a store brand, while Loblaws has President’s Choice and those are often the brands people use to save money,” von Massow said.
Dollarama – $2.50
Loblaws – 3,99 $
4 – Cereals
A box of Quaker cereal at Dollarama costs $3.50, while the same size box (450 g) at Loblaws sells for $5.49.
However, shoppers who want to grab a carton of milk with their cereal will have better luck at Loblaws. A spokesperson at Loblaws noted Friday followingnoon that, “unlike a dollar store, we offer customers a wider selection of products, including fresh meats and produce, and we have lower costs higher operating costs due to the size and composition of our stores.
Dollarama – $3.50
Loblaws – 5,49 $
5 – Oat milk
A carton of Earth’s Own original oat milk costs $2.50 at Dollarama. In the health section at Loblaws, buyers will find the same product for just under 50 cents more, at a price of $2.99.
Dollarama – $2.50
Loblaws – 2,99 $
6 – Chewy bars
A Quaker Dipps chocolate chip granola bar costs $2 for a pack of five at Dollarama and $3.49 at Loblaws. Or two boxes for $5.50.
Buying two boxes of granola bars at Dollarama is cheaper, but von Massow said it’s worth noting that customers consider loyalty programs when making pricing decisions, with more than a billion PC Optimum points distributed last year.
One of the major criteria for loyalty programs is “basket size,” as Mr. von Massow puts it. “They make money by selling you more stuff … to keep you coming back,” he said.
Dollarama – $2
Loblaws – 3,49 $
At the time of writing, CTV News contacted Dollarama for comment on the matter, but has yet to receive a response.
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