Why do some groceries cost half as much at Dollarama as Loblaws?

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Why do some groceries cost half as much at Dollarama as Loblaws?
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A comparison of prices at Dollarama and Loblaws in Toronto recently went viral online, showing a handful of food items cost double at the big box grocer.

While Loblaws and Dollarama are not direct competitors – one being a discount store, the other a grocery chain – CTV News Toronto visited Dollarama and Loblaws locations in downtown Toronto to compare and contextualize prices at the two stores., explains, there is more than meets the eye.At Dollarama, a bag of Italpasta spaghetti costs $1 while the identical product at Loblaws is priced at $4.49 – more than four times the cost. That being said,“You can look at that two ways.

For example, original No Name bread costs $2.79 for a loaf , just a few cents more 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 explained.A box of Quaker Life cereal at Dollarama costs $3.50, while the same-size box at Loblaws is priced at $5.49.

He points out that produce would fall into this category 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.”Non-dairy milk drinkers at Dollarama will have better luck with oat milk. A carton of Earth's Own original oat milk costs $2.50 at Dollarama.

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