Some Loblaws prices are double Dollarama – here’s why

A comparability of costs at Dollarama and Loblaws in Toronto not too long ago went viral on-line, displaying a handful of meals gadgets price double – or extra – on the massive field grocer.

While Loblaws and Dollarama are usually not direct rivals – one being a reduction retailer, the opposite a grocery chain – CTV News Toronto visited Dollarama and Loblaws places in downtown Toronto to match and contextualize costs on the two shops.

IN PICTURES: How Loblaw grocery retailer costs evaluate to Dollarma

In some instances, Loblaws costs had been greater than double Dollarama’s, however as Mike von Massow, a meals economist on the University of Guelph, explains, there’s greater than meets the attention.

PASTA

The most staggering worth distinction between Dollarama and Loblaws was the price of pasta.

At Dollarama, a bag (450g) of Italpasta spaghetti prices $1 whereas the similar product at Loblaws is priced at $4.49 – greater than 4 occasions the fee. That being mentioned, Loblaws additionally sells 2.27 kg of the identical spaghetti for $7.99.

“You can look at that two ways. There’s an advantage for people who buy larger quantities or you can say there’s a disadvantage for people who can’t afford to spend as much every time they go to the grocery store,” von Massow mentioned.

Dollarama – $1

Loblaws – $4.49

Spaghetti offered at Dollarama in Toronto.

RICE

The identical ethos applies to the distinction in pricing for rice.

Ben’s Original rice at Dollarama prices $1.75, however solely comprises 132 g, barely greater than a mean serving dimension.

The identical product at Loblaws prices $4.49 for one bag, $9.99 for 3 luggage or $10.49 for two.2 kg.

“There are really good opportunities if you put more in your basket, but it can create a barrier for people who are living paycheque to paycheque,” von Massow mentioned.

Dollarama – $1.75

Loblaws – $4.49

Ben’s Original rice offered at Loblaws.

BREAD

A loaf of Wonder Bread (675 g) – white and complete wheat – prices $2.50 at Dollarama.

The similar product at Loblaws prices $3.99 for a loaf or $7 for 2 loaves.

Evidently, Wonder Bread at Dollarama is cheaper, however Loblaws competes with their in-store manufacturers. For instance, authentic No Name bread prices $2.79 for a loaf (675g), only a few cents greater than the Wonder Bread at Dollarama.

“Dollarama does not have a store brand, whereas Loblaws has President’s Choice and those are often the brands that people use to compete on prices,” von Massow defined.

Dollarama – $2.50

Loblaws – $3.99

Wonder Bread offered at Dollerama in Toronto.

CEREAL

A field of Quaker Life cereal at Dollarama prices $3.50, whereas the same-size (450g) field at Loblaws is priced at $5.49.

However, breakfast consumers trying to seize a carton of milk with their cereal will solely have luck at Loblaws. In different phrases, it’s a one-stop-shop, as von Massow places it. “You essentially pay for that convenience,” he mentioned.

He factors out that produce would fall into this class too, which a Loblaws spokesperson echoed on Friday afternoon, stating, “unlike a dollar store, we offer customers a wider choice of products, including fresh meat and produce and have higher operating costs due to the size and make-up of our stores.”

Dollarama – $3.50

Loblaws – $5.49

Cereal offered at a Dollarama in Toronto.

OAT MILK

Non-dairy milk drinkers at Dollarama could have higher luck with oat milk. A carton of Earth’s Own authentic oat milk prices $2.50 at Dollarama.

In the well being part at Loblaws, customers will discover the identical product for slightly below 50 cents extra, priced at $2.99.

Dollarama – $2.50

Loblaws – $2.99

Oat milk offered at Loblaws.

GRANOLA BAR

A Quaker Dipps chocolate chip granola bar prices $2 for a pack of 5 at Dollarama and $3.49 at Loblaws. Or, two bins for $5.50.

Buying two bins of the granola bars at Dollarama is cheaper, however von Massow mentioned it’s value noting that clients think about loyalty applications when making selections about pricing, with multiple billion PC Optimum factors given out final 12 months.

One of the foremost standards in loyalty applications is “basket-size,” as von Massow places it. “They make money on selling you more things … to get you to come back,” he mentioned.

Dollarama – $2

Loblaws – $3.49

Dipps granola bars offered at Loblaws in Toronto. CTV News Toronto reached out to Dollarama for remark however didn’t obtain a response earlier than publication.