Savvy shoppers know they can save big on a loaf of bread at Dollarama. But at more than a dozen of the Quebec-based company’s stores in Nova Scotia, there’s no bread on the shelves. Those stores have one thing in common: there’s a Sobeys nearby. Mary Wilson went shopping at Dollarama’s Cole Harbour location last […]
They have this year, but interest rates are also up.
Their longer-term average profit margin is only 1.77%. That’s not good. Most business need a 10% profit margin to be considered healthy. Most other business doing as poorly as they would have closed their doors years ago!
However, it works in their case because the retail profit’s purpose is only to service the debt, expecting the actual profitability to come from land and capital appreciation. It is no surprise that their profit margin is up this year commensurate with interest rates.
They very well might. They haven’t left too much room for error in the margins. Given all the bread scandals we’ve heard about lately, one would be inclined to think it must be a grocery store’s cash cow.