The cost of discount stores: good or bad?

According to an article on CBC News, Giant Tiger and other discount stores are in an expansion mode! Usually when companies are expanding is a good sign, but in a case of discount stores what is that good or bad?

For Marvin Ryder, a professor at McMaster School of Business, the case of discount stores has an interesting factor: “Ryder believes that debt-burdened consumers remain nervous about the economy, and are therefore cautious about spending… “.

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The article goes to state that: “(the) Average Canadian incomes have barely risen over the last year, according to Statistics Canada. For workers in retail, accommodation, and food services, wages have actually fallen by about two per cent.”

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It seems that the expansion of discount stores also means a harsh reality; consumers in general are having less income to spend and therefore are more selective on where to buy.

 

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4 thoughts on “The cost of discount stores: good or bad?

  1. That is the reason you are the teacher!! 🙂 yes, the increase number of discount stores may be a reflection of a society that is facing economical challenge of “high paying jobs vs low paying ones”. The former is more common to find these days than the later. So, a good environment for the growth of discount stores. The final question is: “is that sustainable?”

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  2. I enjoyed reading this post. I used to live in Sarnia 10 years ago and Giant Tiger was the place to go! It’s crazy to think that after a decade the company is looking to expand. I guess that’s because the majority of people living in within the area only have so many stores they can shop at..

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