“As the name implies, everything here seems to be a dollar more or less. Right? Although it is not,” said Markus Giesler, a professor at the Schulich School of Business at York University. SEE: The full Marketplace research:

Battle of the giant dollar stores

Do Shopping in a Dollar Store Always Save You Money? The CBC Marketplace has tested two of Canada’s most popular dollar stores: the Dollarama and the Dollar Tree. 8:15
The marketing and layout of the store may contribute to the perception of the best deal, while it may not always be the case. “The way goods are presented to us is designed to make us buy more than we absolutely need,” Giesler said. “This is also, frankly, the trap that many consumers fall into. Including myself.” Dollarama has more than 1,400 locations across Canada with products ranging from just under $ 1 to about $ 4. The company announced this week that it plans to start selling some items for up to $ 5. The Dollar Tree has about 230 locations selling goods for $ 1.25 or $ 1.50.

What did they spend?

The test was aimed at comparing identical items, but stores often sold products in different sizes. In this case, the price was broken down by unit. Froot Loops at Dollar Tree cost $ 1.25 versus $ 4 at Walmart and $ 2 at Dollarama. However, the package at Dollar Tree was only 87 grams compared to 345 grams at Walmart and 230 grams at Dollarama. The conversion to unit price means that the Dollar Tree product ends up costing more per 100 grams. Froot Loops by Walmart, Dollar Tree and Dollarama are displayed at a price comparison per unit (David Abrahams / CBC)
“There is a discrepancy between what these stores are communicating, what they are sending messages and what they are delivering, and this is something that is not always known to the unpretentious consumers,” Giesler said. Two trial shoppers and the Marketplace team went to Dollarama, Dollar Tree and Walmart for a list of the same products in toiletries, snacks, food, cleaning supplies, toys and pet food – although they found that sizes often differed .

Price comparison needed

Giesler said buyers need to be aware of their size comparisons. A common tactic in dollar stores, he noted, is to carry only one type of product – a brand of toothpaste, for example – making it difficult to compare stores. Dollar stores typically sell nothing for more than $ 1, and many of these stores are located in lower-income neighborhoods with more newcomers to Canada, he said. “We often talk about vulnerable consumers, lower-income families and families who really need every penny and every dollar,” he said. They signal: “We are making affordability and the Canadian dream a reality.”

Not all dollar stores are the same

In the end, Dollarama did well in the Marketplace test, always surpassing the Dollar Tree in prices and pennies from Walmart in this comparison of 17 items. Dollarama sent a statement to Marketplace stating that it aims to provide daily products at competitive prices at low fixed prices throughout the year without sales or promotions. Seven products that were more expensive per unit price on the Dollar Tree were: Froot Loops, Pringles, KitKat, Whiskas Perfect Portion cat food, Starburst candies, Colgate toothpaste and white Crest 3D toothpaste, which grossed over $ 6 per 100 milliliters. The Dollar Tree had some wins in the Marketplace test: the Smarties (at 75 grams versus 45 grams) and the Lever 2000 body wash outperformed its competitors. In a statement, the company wrote that the white Crest 3D toothpaste is considered a travel-sized item and that consumers continue to shop at the Dollar Tree for the extreme values ​​they can find. Two popular children’s items – Hot Wheels cars and Play-Doh containers – were slightly more expensive at both dollar stores than at Walmart. These products were slightly more expensive in two-dollar stores compared to Walmart. (Stephanie Matteis / CBC)
“When we walk into a dollar store, we don’t really think about doing equation or math in our minds,” said Mark Lee, a professor at the Ted Rogers School of Management at Ryerson University. Instead, he said, people “think more about the dollar,” which leads shoppers to an idea that they do not have to spend much, but buyers often spend more than expected and rarely leave a dollar store alone. an item. In a pricing victory for dollar stores, they both offered a pregnancy test for $ 1.25. Walmart had one for more than $ 8. Equalize the pregnancy test from Walmart. Impulse from the Dollar Tree. and Medicare from Dollarama. (Stephanie Matteis / CBC)
All three brands are in the Health Canada Database of licensed products that have been approved for effectiveness and safety when used in accordance with the instructions. Dr Dara Maker, a family doctor at Women’s College Hospital, says she recommends a pregnancy test for her own patients trying to conceive. “If you get a positive pregnancy test at the dollar store, you’re pregnant,” Maker said. “It is very rare to get a false positive.” There were some products, such as one-liter juice cans for some brands such as Minute Maid and Five Alive, that were just minutes away from each store. Experts say there are things consumers can do to ensure they have a good dollar store offer, such as comparing prices and sizes. “Do your research whenever you can. Compare and contrast even when comparisons cannot be made on the shelf inside the aisle,” Giesler said, suggesting that price comparison applications may be useful.