Are you really getting a deal at your favourite dollar store?
CBC
In a comparison of 17 everyday items, a CBC Marketplace investigation has found prices at Dollar Tree were the same or higher in a price-per-unit analysis than at Dollarama or even Walmart, meaning Canadians may not always be getting the deal they think they are when shopping at popular dollar store chains.
"As the name says, everything here seems to be a dollar more or less. Right? Even though it's not," said Markus Giesler, a professor at the Schulich School of Business at York University.
WATCH: Marketplace's full investigation:
Marketing and store layout may contribute to the perception of the best deal, when it may not always be the case.
"The way the merchandise is presented to us is designed to make us buy more than we absolutely need," Giesler said. "That's also, quite honestly, the trap that many consumers fall into. Myself included."
Dollarama has more than 1,400 locations across Canada with products ranging from just under $1 to around $4. The company announced this week that it plans to start selling some items for as much as $5. Dollar Tree has about 230 locations selling goods for $1.25 or $1.50.
The test aimed to compare identical items, but the stores often sold products in different sizes. In that case, the price was broken down per 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; converting to price per unit means the Dollar Tree product ends up costing more per 100 grams.
"There is a discrepancy between what these stores communicate, what they message and what they deliver, and that's something that's not always known to unassuming consumers," Giesler said.
Two test 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 — though they found sizes often varied.
Giesler said shoppers need to know their size comparisons.
A common tactic at dollar stores, he noted, is carrying just one type of product — one brand of toothpaste, for example — making in-store comparison shopping difficult.
Dollar stores don't typically sell anything for $1 anymore and many of those stores are based in lower-income neighbourhoods with more newcomers to Canada, he said.
"Often we're talking about vulnerable consumers, lower-income families and families who actually need every penny and need every dollar," he said.