Why invest in bargain retailers?

By Staff | December 9, 2013 | Last updated on December 9, 2013
1 min read

Canada is turning into a discount nation, reports Canadiangrocer.com.

That’s partially because many Canadian consumers turned to bargain hunting after the recession, says the outlet. It adds Nielsen research has revealed “37% of all retail sales in Canada are [now] made with a temporary price reduction, compared to 27% prior to the most recent recession. In the U.S., the current figure is just 30%.”

What’s more, the growing demand for deals has made Dollarama one of our country’s best-performing retail stocks; as of September 17, 2013, that company’s stock had returned 207.2% over the past four years, finds Canadiangrocer.com.

The outlet adds, “The next-best performer in the consumer discretionary sector was Canadian Tire at 71.1%. Not bad, but [that’s] only one-third of Dollarama’s gain.”

Read more about the discount-shopping trend.

Also check out:

Canadians flock to Black Friday deals

5 not-so-great Black Friday deals

Tips for controlling spending

Is your client a Chandler or Joey?, for more on common financial habits.

Value back in vogue

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.