Thursday, March 2, 2017
Discount retailing is booming and Canada, and Giant Tiger is among the chains in expansion mode with plans to add between 10 and 15 stores to the 200 it already operates across the country.
Also riding the wave is Costco Canada which is midway through a seven-store expansion, according to a CBC report. The biggest of them all, Dollarama, is adding 60 to 70 new locations this year to its 1,000-store national network.
Marvin Ryder, a professor of business at Hamilton's McMaster University, believes that debt-burdened consumers remain nervous about the economy, and are therefore cautious about spending.
"We had a recession in 2008 but we haven't recovered from it, we're in the longest period of Canadian economic recovery. We bounced back faster from the Great Depression than we did from that recession," Ryder says, adding that the slow recovery has affected people's behaviour. "Consumers are more value conscious."
Average Canadian incomes have barely risen over the last year, according to Statistics Canada. For workers in retail, accommodation, and food services, wages have actually fallen by about two per cent.