Friday marked the end of an ugly week in the markets.
The S&P was down another 1.1% while Toronto was about flat for the day.
Dollarama was down 3.8% to $73.69.
I am starting to see a lot of stories about price increases in Canada. The low Canadian dollar is really starting to have an impact on prices of many imported goods. It seems like the impact was delayed perhaps because retailers were partly hedged or because the dollar was still somewhat higher when they had contracted to import the goods that were being sold until recently. But now, it seems prices are rising.
I had been concerned for the last year that Canadians Tire would have to raise prices (which tends to drive away some customers) or was going to have lower prices. Somehow this did not happen as of Q3 2015 as Canadian Tire was partly hedged and as they squeezed suppliers and took whatever actions they could to keep a lid on their merchandise costs. But I understand they are now implementing wide-spread price increases. However, they may still report a strong Q4.
Dollarama may have an easier time simply passing along price increases since it will have the lowest prices.