Groupe Dynamite Inc. says revenue for the retailer increased by 17.5% to $258.8 million in Q3 2024, compared to $220.1 million in Q3 2023.
The company’s quarter ended November 2.
Andrew Lutfy – Photo courtesy of Carbonleo
“I’m incredibly proud of the Groupe Dynamite team for delivering strong year-to-date results and a record third quarter, while at the same time completing our successful IPO. Our focus on innovation and disciplined execution led to strong metrics across the board. Our distinct brand strategy, omnichannel platform and data driven approach to marketing are resulting in robust performance in existing and new markets. Our de-risked fashion model with increased speed-to-market and leading inventory management are translating into solid bottom-line results,” said Andrew Lutfy, Chief Executive Officer and Chair of the Board. “As we pursue our growth, we believe we have everything in hand to deliver on our ambitious plan and to create value for all our stakeholders.”
Stacie Beaver
“Following a strong summer season, our momentum continued into the third quarter with strong revenue and comparable store sales growth, fuelled by the success of our premier store and marketing strategies and on-trend collections. E-commerce sales also continued to accelerate, reflective of our aspirational omni-channel shopping experience tailored to the needs and wants of our customers. We have also ramped up our marketing and activation activities in the U.S. and launched our innovative Dynamite 3.0 store in Montréal. These initiatives are driving brand awareness and customer acquisition, setting the stage for what we believe is a bright future of continued profitable growth for Groupe Dynamite,” said Stacie Beaver, President & Chief Operating Officer.
Fiscal 2024 Third Quarter Highlights
Comparable store sales growth of 10.1% in Q3 2024, up and above comparable store sales growth of 9.8% in Q3 2023. Retail sales per square foot increased by 22.7% since the end of Q3 2023, reaching $713 over the last 4 quarters ending Q3 2024.
Adjusted EBITDA increased by 21.0% to $87.2 million in Q3 2024, representing an adjusted EBITDA margin of 33.7%, compared to 32.7% over the same period last year, driven by improvements in gross margin and operating leverage.
Operating income increased by 18.3% to $63.1 million in Q3 2024, compared to $53.3 million in Q3 2023.
Diluted net earnings per share increased to $0.38 in Q3 2024, compared to $0.32 in Q3 2023, representing an increase of 15.9%. Adjusted diluted net earnings per share increased by 22.2% to $0.41 in Q3 2024, compared to $0.33 in Q3 2023.
Opening of 6 new stores in the United States and in Canada under both banners during Q3 2024. There were no closures during this period.
Inventory turnover improved to 6.09x in Q3 2024, compared to 5.49x for the same period of the previous year.
Return on capital employed reached 43.3% at the end of Q3 2024, compared to 30.7% at the end of Q3 2023.
Net leverage ratio was 1.41x in Q3 2024, down from 2.26x in the corresponding period of the previous year.
Groupe Dynamite operates retail stores GARAGE and DYNAMITE.
Restaurants Canada says the Fall Economic Statement was a missed opportunity by the federal government to build on the positive momentum the GST and HST holiday has generated for the foodservice industry.
“The GST and HST holiday provides much needed temporary relief for restaurants, which have been battered by rising costs and low consumer demand over the past year. Restaurants Canada’s Chief Economist conservatively estimates the tax break will generate an additional $1.5 billion in sales for the restaurant industry. This influx of cash is especially important during the usually slow January and February period. It will allow restaurants to pay down debt, give their hourly staff more hours and invest in wages,” said Kelly Higginson, President and CEO, Restaurants Canada.
Kelly Higginson
“But restaurants need more long-term measures that address their labour and affordability concerns and create a promising economic environment for them to grow.”
She said Restaurants Canada continues to call on the federal government for a comprehensive plan to address labour shortages and tap into Canada’s existing labour pool in the wake of major changes to the immigration system.
“There are currently 78,000 vacant jobs across our industry. It was disappointing to see no movement on this file in the Fall Economic Statement,” she said.
“Nearly 1 million unemployed newcomers currently hold open work permits in Canada. These newcomers face significant barriers to employment and Restaurants Canada has been advocating for a matching and training program to connect them with jobs in industries like foodservice, particularly in regions outside the major metropolitan centres supporting remote, rural and tourist communities. We are also asking the government to work with the foodservice industry on strategies to attract more Canadian workers, especially youth.”
Higginson said bankruptcies in the industry increased by 45% in the first eight months of 2024 compared to the same period in 2023. In fact, 53% of restaurants are operating at a loss or barely breaking even. At the same time, total food costs increased by 25%, insurance by 24%, utilities by 20% and labour costs by 18%. With profit margins typically between 3% and 5%, it has been hard for operators to absorb these cost increases.
“The federal government can provide long-term relief to our industry and to the 1.2 million workers we employ by reducing Employment Insurance payroll taxes by 2%. In fact, nearly eight in 10 Canadians (77%) said they would benefit from government reducing payroll taxes in a recent public opinion poll conducted by spark*insights on behalf of Restaurants Canada,” she added.
“Restaurants Canada will continue to advocate for these and other measures with all political parties in 2025 and push them to do the right thing for our industry as they prepare their political platforms.”
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Mail operations will officially resume on Tuesday after the Canada Industrial Relations Board (CIRB) ordered Canada Post employees back to work. The ruling comes after weeks of stalled negotiations between the Canadian Union of Postal Workers (CUPW) and Canada Post failed to yield a collective agreement.
Despite the return to work, Canada Post has warned customers of significant delays as it works to clear the extensive backlog created by the strike, which began on November 15. According to the corporation, no new mail or parcel pickups will occur until Thursday, while international mail will only resume acceptance on December 23.
“Canadians can expect delays into January 2025 as we work to restore normal operations,” said Canada Post in a statement, adding that service guarantees will remain suspended until operations stabilize.
Federal Government Forced to Intervene
The federal government, which initially refrained from stepping into the dispute, ultimately directed the CIRB to order workers back to their jobs. Labour Minister Steven MacKinnon described the intervention as a necessary “timeout” for both parties, emphasizing the need to avoid further disruption during the critical holiday season.
MacKinnon announced the government will appoint an industrial inquiry commission to investigate Canada Post’s operations and the key issues in the negotiations. The commission will provide recommendations by May 15, 2025 on how a new agreement can be reached.
“The inquiry will have a broad scope,” MacKinnon explained in a statement. “It will examine Canada Post’s structure from both a customer and business model standpoint, given the challenges the corporation faces in today’s evolving environment.”
Key Issues in the Dispute
At the heart of the strike are wage increases and Canada Post’s proposal to expand weekend delivery services. Canada Post has argued that adding weekend delivery is essential to remain competitive with private courier services and improve profitability. The organization has operated at a financial loss for years.
To achieve this, Canada Post proposed a mix of new permanent part-time roles alongside full-time positions to staff weekend shifts. The corporation maintained that the arrangement would offer necessary flexibility while managing costs.
However, the CUPW strongly opposed this proposal, claiming it undermines full-time employment opportunities and worker stability. The union characterized Canada Post’s plan as a broader effort to shift towards precarious work.
After two days of hearings over the weekend, the CIRB declared an impasse, ordering the 55,000 striking workers back on the job under the terms of the previous contract, extended until May. Notably, Canada Post and the CUPW agreed to a five per cent wage increase, retroactive to the expiration of the prior collective agreement.
Business and Union Reactions
Business groups, which had been calling for government intervention throughout the strike, welcomed the return-to-work order. Many businesses reported significant disruptions during the peak holiday shopping season, scrambling to find alternative delivery methods as packages and letters sat idle.
The CUPW, however, expressed outrage at the government’s decision, arguing it undermines workers’ rights to collectively bargain and strike. The union warned that this intervention reflects a troubling pattern of government interference in labour disputes.
Labour unions have widely criticized recent government interventions in disputes, including directing workers back to the job and imposing binding arbitration. Legal challenges related to previous interventions are ongoing.
Challenges Ahead for Canada Post
Canada Post now faces the dual challenge of clearing the current backlog while navigating continued tensions with the CUPW. The corporation’s financial troubles add further complexity. Increasing competition from private couriers and growing consumer expectations for faster deliveries have forced Canada Post to modernize its operations.
The industrial inquiry commission’s findings, expected in May, will likely address these challenges in detail. However, Canada Post must find a path forward that balances operational efficiency with fair employment practices—a task that has proven elusive in recent years.
As mail begins moving again this week, customers are advised to remain patient. Delays, Canada Post said, will persist into the new year as the corporation slowly rebuilds capacity after the month-long disruption.
Toys R Us store. Photo Credit: Patrick Morrell / @patmorrell_drone
Toys”R”Us Canada has secured a significant boost to its operations through a C$120 million financing package from global asset experts Gordon Brothers. The deal includes a C$100 million first-lien revolving credit facility and a C$20 million first-in, last-out term loan. This financing will help address the specialty toy and baby retailer’s ongoing borrowing needs while supporting its broader operational strategy.
In addition to the financing, Gordon Brothers is extending its expertise by assisting Toys”R”Us Canada with a store rationalization initiative. This program encompasses both retail inventory and real estate, aligning with the retailer’s long-term growth and efficiency goals.
Kyle C. Shonak, Senior Managing Director and Head of North America Lending at Gordon Brothers
“We have built and maintained a strong, tenured relationship with Toys”R”Us Canada and will continue our support with this latest full financing solution that ties together the entire capital structure and store rationalization component,” said Kyle C. Shonak, Senior Managing Director and Head of North America Lending at Gordon Brothers. “As we grow and expand our presence in Canada and our support of Canadian retailers and borrowers, we will continue to help businesses maximize liquidity with our integrated services and solutions-oriented approach.”
A Strategic Financial Partner for Toys”R”Us Canada
The latest financial injection reflects a strengthened partnership between the two companies. Doug Putman, Founder of Putman Investments and owner of Toys”R”Us Canada, underscored Gordon Brothers’ critical role in supporting the retailer’s ongoing success.
“Gordon Brothers has been an invaluable resource to us, and we engaged them on this latest financing because of their flexibility,” said Putman in a statement. “As a constructive partner who truly understands our business, we can continue to ensure the longevity of the brand with their integrated support and partnership.”
Putman Investments, led by Doug Putman, acquired Toys”R”Us Canada in 2021, bringing the brand under Canadian ownership and reaffirming its place as a key player in the domestic toy and baby product market. Since then, the company has continued to innovate and evolve its operations to meet shifting consumer demands.
Doug Putman
Supporting Toys”R”Us Canada’s Long-Term Growth
Gordon Brothers, renowned for its ability to provide both short- and long-term capital, structured the deal to address immediate operational liquidity while enabling future transformations. The firm’s asset-focused lending model allows it to lend against brands, real estate, inventory, receivables, machinery, and equipment.
The integrated support from Gordon Brothers also includes strategies to maximize asset values. This expertise is particularly critical in a retail environment where optimizing physical footprints and operational efficiency has become paramount for growth.
Store Rationalization as Part of the Strategy
A major component of Gordon Brothers’ partnership with Toys”R”Us Canada is the store rationalization program. This initiative focuses on enhancing the performance of the retailer’s physical network of over 80 stores across the country while supporting its robust e-commerce presence through Toysrus.ca and Babiesrus.ca.
Store rationalization strategies typically involve evaluating underperforming locations, optimizing inventory allocation, and identifying opportunities for real estate improvements. Such initiatives are often essential for specialty retailers to maintain profitability and customer satisfaction in an evolving retail market.
Gordon Brothers’ deep expertise in both retail and real estate allows it to tailor solutions that align with clients’ long-term visions. By integrating asset-based lending with operational consulting, the firm provides businesses with a holistic approach to restructuring and growth.
Photo: Toys R Us Canada
The Value of Flexible Financing in Retail Transformation
As the retail industry undergoes continued transformation, access to flexible financing has become increasingly vital for businesses aiming to navigate challenges and capitalize on opportunities. Gordon Brothers’ financial solutions provide a much-needed alternative to traditional debt and equity financing.
The firm partners with management teams, private equity sponsors, strategic buyers, and asset-based lenders globally to deliver tailored capital solutions. These structures complement existing asset-based lending facilities and are designed to optimize liquidity and business outcomes.
“Our goal is to deliver practical and comprehensive financial solutions that empower businesses to move forward with confidence,” added Shonak. “By leveraging our expertise across multiple asset classes, we’re able to create financing packages that meet the unique needs of our clients.”
Toys”R”Us Canada’s Continued Commitment to the Market
Since its inception in 1984, Toys”R”Us Canada has remained a trusted name for toys and baby products across the country. Known for its commitment to delivering quality national brands, exclusive products, and innovative customer programs, the retailer has built strong relationships with Canadian families over the decades.
Toys”R”Us Canada has also made significant strides in giving back to local communities. The company’s charitable initiatives focus on enhancing resources for children, supporting child development through play, and helping families facing challenges.
About Gordon Brothers
Founded in 1903, Boston-based Gordon Brothers is a global leader in maximizing asset values across the business cycle. The firm offers integrated services that include asset-based lending, financing, and trading, along with best-in-class disposition and appraisal services. With over 30 offices worldwide, Gordon Brothers serves clients across retail, industrial, real estate, and brand sectors.
Gordon Brothers’ solutions-oriented approach allows businesses to leverage its extensive expertise and capital resources to overcome challenges, optimize assets, and drive growth. For more information on its financing services, visit Gordon Brothers.
About Toys”R”Us Canada Ltd.
Toys”R”Us Canada has been a cornerstone of the Canadian retail landscape since 1984. With over 80 stores nationwide and a growing e-commerce presence, the company remains a leader in specialty toy and baby products. Committed to innovation and community engagement, Toys”R”Us Canada continues to deliver exceptional value to Canadian families.
The brand was formerly a subsidiary of Fairfax Financial Holdings Limited, a Canadian-based holding company with investments across various industries. Putman Investments acquired Toys”R”Us Canada in 2021.
Christmas tree shopping. Photo: Getty Images/licensed
The Canadian government’s temporary GST/HST tax break, aimed at alleviating financial pressures during the holiday season, appears to be falling flat with most Canadians. A recent survey conducted by Leger highlights that 78% of respondents believe the tax break will not impact their holiday spending plans. The findings raise questions about the effectiveness of government initiatives in boosting consumer activity amid ongoing economic challenges.
The tax break, effective from December 14, 2024, to February 15, 2025, exempts certain essential items from GST/HST. Eligible categories include prepared foods, children’s products, physical books, and select holiday items such as Christmas trees. Despite the initiative’s scope, early indications suggest it will have minimal influence on consumer spending patterns.
Limited Impact Across Demographics
Luc Dumont, Senior Vice President at Leger, commented on the survey results: “The fact that only a little more than one in five Canadians say the tax break will influence their spending is pretty striking. I expected it to be more polarizing.”
Luc Dumont, SVP at Leger
Interestingly, younger Canadians aged 18-34 were the most responsive, with 39% indicating the tax break could influence their spending. This is significantly higher than older groups, where only 22% of those aged 35-54 and 11% of those aged 55 and older said they would adjust their holiday expenditures. Dumont noted, “It’s clear that if you’re younger and making less money, this initiative resonates a bit more.”
Lower-income households also showed a higher likelihood of being influenced. Among respondents with annual household incomes below $60,000, 26% said the tax break would impact their spending decisions. For those earning between $60,000 and $100,000, the figure remained consistent at 26%. However, the number dropped to 16% for households earning over $100,000 annually.
“If you’re in a lower-income bracket, every little bit helps,” Dumont explained. “But for higher-income Canadians, the tax break is barely a blip on their radar.”
Regional Variations: Ontario and Manitoba/Saskatchewan Stand Out
While most provinces aligned with the national average, some regional differences emerged. In Alberta, where there is no provincial sales tax, only 13% of respondents said the tax break would influence their spending.
“It’s not surprising to see lower impact in Alberta,” Dumont said. “Without provincial sales tax, the savings are less significant.”
On the other hand, residents of Manitoba/Saskatchewan and Ontario were far more responsive. In Manitoba/Saskatchewan, 29% of respondents said they would adjust their spending, while 26% of Ontarians shared the same view. These regions stood out for their optimism compared to the rest of Canada.
“The regional differences are fascinating,” Dumont noted. “It shows that perceptions of value can vary greatly depending on location and economic circumstances.”
Effectiveness in Reducing Financial Pressures
Despite the government’s intention to provide relief, only 27% of Canadians believe the tax break will effectively reduce financial pressures during the holidays. Alarmingly, only 4% of respondents considered the initiative “very effective.”
Dumont shed light on the lukewarm reception: “Most Canadians are sitting in the ‘somewhat effective’ or ‘not very effective’ bucket. The lack of strong positive sentiment highlights that people don’t see this as a game-changer.”
Once again, younger Canadians and lower-income households were more optimistic. In the 18-34 age group, 34% felt the tax break would be at least somewhat effective. Similarly, those earning less than $60,000 annually were more likely to view the initiative positively.
“For lower-income Canadians, this tax break provides some tangible benefits,” Dumont said. “But overall, the impact is muted, especially among higher earners.”
Holiday Spending Dynamics: A Disconnect Between Perception and Reality?
One critical takeaway from the survey is the potential disconnect between consumer perception and actual behaviour. Dumont explained that survey responses often differ from real-world spending patterns.
“When we ask people how much they’ll spend during the holidays, they tend to underestimate. Once they’re in the store, they start doing the math in their heads and often spend more than planned. The same could happen with the tax break. People may say it won’t influence them, but the reality might be different.”
Retailers are closely watching how the tax break plays out, particularly as they contend with economic headwinds and logistical challenges, such as Canada Post delays. Dumont added, “I’d love to hear from retailers about what actually happened during the first weekend of the tax break. That’s where we’ll get a clearer picture.”
Retailer Response and Broader Challenges
The holiday season has been particularly challenging for Canadian retailers this year, marked by strikes, supply chain disruptions, and economic uncertainty. Dumont noted that while retailers are resilient, these challenges compound an already difficult environment.
“Between port strikes, rail disruptions, and Canada Post delays, it’s been a tough few months. Retailers are doing everything they can—extending Black Friday sales, running promotions—but the tax break just doesn’t seem to be enough to sway consumers in a big way.”
The complexity of the tax break may also be a factor. While categories such as books, prepared foods, and children’s products are included, there are exclusions within each group. For example, alcoholic spirits and digital publications are not eligible, creating some confusion among consumers.
“The lists made available online are confusing,” Dumont observed. “I think the lack of clarity plays a role in how people perceive the initiative. If you’re not sure what’s included, it’s harder to see the benefit.”
Looking Ahead: Measuring the True Impact
As the holiday season unfolds, the true impact of the GST/HST tax break will become clearer. Dumont suggested that a follow-up survey after the holidays could provide valuable insights.
“We’ll likely poll Canadians again to see how their spending was actually influenced. Did the tax break make a difference once they were in the store? That’s the big question.”
Ultimately, the Leger survey highlights the limitations of tax policy in addressing financial pressures for Canadian consumers. While the initiative offers some relief, particularly for younger and lower-income Canadians, its overall influence on holiday spending remains minimal.
“It’s a well-intentioned initiative,” Dumont concluded. “But for most Canadians, it’s simply not enough to change their plans.”
Rendering of the Kelowna Costco Wholesale
Image Credit: Submitted/City of Kelowna
Costco has been ranked the top grocery retailer in Canada, according to the dunnhumby Retailer Preference Index (RPI), a nationwide study that blends financial results and customer perceptions to evaluate grocers’ long-term success. Following closely behind are discount-focused banners Super C, Maxi, and Walmart, underscoring a nationwide trend favouring value-oriented retailers in a challenging economic climate.
The RPI, a comprehensive analysis by global customer data science company dunnhumby, highlights how Canadian shoppers are increasingly prioritizing price, promotions, and rewards when choosing where to buy groceries. Retailers that align their strategies with these priorities have seen notable growth in market share and revenue over the past five years.
Chris Thomson, Senior Vice President at dunnhumby in Canada and the U.S.
“The impact of customer behavioural shifts due to inflation is clear across the Canadian market,” said Chris Thomson, Senior Vice President at dunnhumby in Canada and the U.S. “For retailers to succeed over the next 12 months, they need to be clear on how their value proposition meets customers’ evolving needs in ways that truly matter to them.”
Value-Oriented Banners Lead Market Growth
The study identifies a strong correlation between price-focused value propositions and revenue growth, particularly among discount, superstore, and club banners. Over the last five years, the top-performing retailers grew their grocery revenues significantly faster than competitors, with some outperforming lower-ranked grocers by up to 1.5 times in long-term growth and three times in recent years.
Costco’s dominance stems from its strong performance across four of the RPI’s five value drivers: price, promotions and rewards, operations, and digital. Notably, the warehouse retailer ranked first nationally for operational efficiency, while its partnerships with third-party delivery platforms such as Uber Eats and Instacart have made it increasingly accessible to Canadian consumers.
The top-ranked grocers reflect changing consumer preferences during a period of economic uncertainty. Super C and Maxi, both discount banners, capitalize on competitive pricing strategies. Walmart, ranking fourth, stands out for its digital capabilities, offering an intuitive e-commerce platform and app that streamline the shopping experience for time-conscious consumers.
Regional Variations in Value Preferences
The study further explores regional nuances in consumer behaviour. In Ontario, where cost-of-living pressures are particularly acute, 48% of a retailer’s long-term success is attributed to its price, promotions, and rewards proposition. By comparison, Atlantic Canada places greater weight on other value levers, with price-focused factors comprising only 35% of long-term success.
For many retailers, leveraging region-specific strategies can offer a competitive advantage. For example, Food Basics ranks third in Ontario due to its leadership in mass promotions and pricing, while Save-On-Foods’ More Rewards program has secured its position as the highest-performing conventional grocer in British Columbia and the Prairies.
“Regional differences highlight the importance of a tailored approach to customer value propositions,” said Thomson. “Successful retailers are those that strike a balance between meeting national price expectations and addressing localized consumer needs.”
Shoppers Drug Mart PC Optimum (Photo: Dustin Fuhs)
The Role of Loyalty Programs
Conventional grocers, which represent nearly 40% of the Canadian grocery market, face mounting pressure to compete with value-driven banners. The study reveals that targeted savings through loyalty programs have become a key differentiator for conventional grocers, helping offset their disadvantage in base pricing.
Loblaw Companies’ PC Optimum program remains a standout example, offering personalized promotions and driving customer retention across banners such as Loblaws, No Frills, and Real Canadian Superstore. Similarly, Save-On-Foods’ loyalty initiatives optimize promotional relevance while maintaining quality standards without overinvesting.
By leveraging loyalty programs, conventional grocers can deliver personalized value to their customers while maintaining a competitive position against discount rivals.
Walmart Dominates Digital; Amazon Gains Ground
Walmart leads in digital capabilities across all regions, with its user-friendly app and website providing an efficient shopping experience. As the role of e-commerce continues to grow, Walmart’s emphasis on saving customers time has solidified its position among the top-ranked grocers.
However, Amazon’s influence in the Canadian grocery market continues to rise. According to dunnhumby’s findings, three out of 10 Canadian consumers now shop for groceries on Amazon, a statistic that signals a growing competitive threat for traditional retailers.
“Amazon’s ability to combine convenience with competitive pricing makes it a retailer all Canadian grocers should be watching closely,” added Thomson.
Walmart Kingsway in Edmonton (Image: Walmart Canada)
The Path Forward for Canadian Grocers
The RPI study offers clear guidance for retailers navigating an evolving grocery landscape. With price, promotions, and rewards accounting for 44% of long-term success nationwide, grocers must continue prioritizing value-driven strategies to maintain customer loyalty.
Retailers focusing on one key value lever can achieve short-term gains, but those excelling across multiple pillars are best positioned for sustained growth. For instance, Costco’s ability to deliver value, quality, and operational excellence simultaneously has cemented its leadership position in Canada.
Thomson concluded, “Change leads to opportunities, and this shift in customer behaviour presents opportunities for all Canadian grocers. Retailers that adapt their strategies to align with these changes will see the greatest success in the months and years to come.”
Methodology and Insights
The dunnhumby Retailer Preference Index evaluates the 28 largest grocery banners in Canada, accounting for 97% of the market share across conventional, discount, superstore, and club formats. The study combines financial performance data with insights from a survey of 6,000 Canadian grocery shoppers.
Retailers are ranked based on five key value drivers:
Price, promotions, and rewards
Quality
Digital
Speed and convenience
Operations
The RPI provides actionable insights for grocers looking to enhance their value propositions and adapt to shifting consumer priorities. Retailers can access their individual profiles by contacting dunnhumby directly or visiting their website.
Job vacancies fell by 31,900 (-5.5%) to 546,100 in the third quarter, marking the ninth consecutive quarterly decline. However, the drop in the third quarter was smaller compared with the decline recorded in the second quarter of 2024 (-63,200; -9.9%), said Statistics Canada in a report released on Monday.
“Job vacancies in sales and service occupations declined for the eighth consecutive quarter, falling by 12,500 (-7.4%) to 155,300 in the third quarter. Despite the decline, sales and service occupations continued to represent the largest share of vacancies among all 10 broad occupational groups, accounting for nearly 3 in 10 (28.4%) vacancies in the third quarter,” said the report.
“Year over year, job vacancies in sales and service occupations declined by 71,400 (-29.8%) in the third quarter. Within this occupational group, food counter attendants, kitchen helpers and related support occupations (-17,300 to 30,100), retail salespersons and visual merchandisers (-10,100 to 20,000), cooks (-6,000 to 13,800), and light duty cleaners (-5,100 to 9,000) saw the largest year-over-year drops in vacancies in the third quarter (not seasonally adjusted).”
In the third quarter, job vacancies nationally declined for both permanent (-27,800; -5.9%) and temporary (-4,100; -4.0%) positions, and among both full-time (-19,300; -4.5%) and part-time (-12,600; -8.5%) positions, said the federal agency.
Meanwhile, total labour demand (the sum of filled and vacant positions) was little changed for the fourth consecutive quarter. On a year-over-year basis, total labour demand was down by 0.1% in the third quarter. This follows year-over-year growth of 0.8% in the third quarter of 2023, and 6.3% in the third quarter of 2022, it said.
“The job vacancy rate—which corresponds to the number of vacant positions as a proportion of total labour demand—decreased 0.1 percentage points to 3.1% in the third quarter of 2024, marking the ninth consecutive quarterly decline from a record high of 5.6% in the second quarter of 2022,” explained StatsCan.
Photo: Monza
“The unemployment-to-job vacancy ratio—the number of unemployed persons per job vacancy—continued a steady increase to 2.6 in the third quarter of 2024, up from 2.4 in the second quarter, and from 2.0 in the first quarter. The increase in the unemployment-to-job vacancy ratio from the third quarter of 2022 reflected both a decrease in job vacancies (-410,500; -43.0%) and an increase in the number of unemployed persons (+374,200; +35.5%, according to the Labour Force Survey). The unemployment-to-job vacancy ratio excludes the territories for consistency with the available Labour Force Survey data.”
On a year-over-year basis, the average offered hourly wage grew at a faster pace in the third quarter (+7.6% to $27.55) compared with the second quarter (+6.8% to $26.80) and the first quarter (+7.3% to $27.25). In comparison, year-over-year average hourly wages of all employees (from the Labour Force Survey) grew 5.0% in the third quarter (data used in this section are not seasonally adjusted), added Statistics Canada.
Starbucks Canada is launching a new benefit for its retail teams.
Beginning Spring 2025,the coffee giant said it will introduce a new paid parental leave top-up benefit for all eligible Canadian store partners who work an average of 20 hours a week or more.
Benefits-eligible partners with six months of continuous service who have a new child will receive 100% of their average pay for up to 12 weeks, said the company.
“Partners have told us how important it is to have financial support when they become new parents, and we listened. Combined with our leading Fertility and Family Expansion offerings, no other retailer in Canada offers better family benefits than we do,” said Starbucks.
“Our success starts and ends with our green apron partners. Beginning Spring 2025, we’re launching a new paid parental leave benefit for all our eligible Canadian store partners who work an average of 20 hours a week or more. Whether it is about career, education or family, we offer competitive pay and a collection of benefits that are best in class. This is why making Starbucks the unrivaled best job in retail is core to our Back to Starbucks plan.”
According to an Angus Reid poll published in October, 41 per cent of respondents said that they were delaying having children due to concerns about the job market and financial security, said Starbucks.
“Starbucks wants to provide both the flexibility and support that many are seeking as they decide whether to have or grow a family, especially for Canadian retail partners with an average age of 26 and likely beginning to think about future planning,” it said.
“This new benefit complements Starbucks leading Fertility and Family Expansion offerings, career growth opportunities, Bean Stock grants, and education support, reaffirming its position as a leader in retail industry benefits.”
Some highlights the company points out:
Last month, it established a goal to fill 90% of retail leadership roles internally, paving the way for its hourly partners to grow with Starbucks.
This month, nearly 17,000 partners in Canada were awarded a Bean Stock grant, and, since 1991, 1.5 million partners around the world have received $2.4 billion in company stock. It also supports ongoing education with tuition reimbursement of up to $1,000 of the cost of post-secondary or continued learning per year.
As President and CEO of retail giant Walmart Canada, Gonzalo Gebara likes to spend time outside the ‘corporate offices’ and where the work is done in more than 400 stores across Canada as well as in the company’s distribution centres.
Gebara leads a retailer that has more than 100,000 employees and he’s often seen in the trenches listening to what they have to say about the business as well as experiencing it first hand.
“This job is awesome. It gives me a chance to learn a lot from the teams. We were touring this fulfillment centre today and we keep learning on different ways to serve our customers and the teams here. The thing that I like about coming to a facility like this one is that this is where the magic happens, right?,” said Gebara in a recent exclusive interview with Retail Insider while he was touring one of the retailer’s distribution centres in Balzac, just north of Calgary’s city limits.
Gonzalo Gebara. Photo by Mario Toneguzzi
“And so, this is where they implement a new process, this is where they bring a new technology and they put it in place and now we can serve customers better. We can bring a better associate experience by providing them better tools and this is where it all happens. So I get the chance to learn from these experiences all the time.
“I get a chance also to work with a very, very high calibre team, that we’re all converging towards this ambition to bring Walmart Canada, to make Walmart Canada, the number one omni-channel retailer. And we’re working on it. We want to stay relevant for our customers, however they want to show up. It’s great to have the opportunity to wake up every morning and have challenges and be part of a team that wants to take charge and wants to find ways in which we can support customers, associates and communities better.
“We work in an industry that’s highly, highly, dynamic. Everything’s happening in this industry. So it’s new developments every day, the construction of ecosystems. All that is very, very interesting to do. I think I’m being kept busy every day.”
Prior to joining Walmart Canada, Gebara was President and Chief Executive Officer of Walmart Chile.
Gonzalo joined Walmart in 2000, as a member of the Finance, Strategy, and Commercial teams. In 2004, he moved to Bentonville, Arkansas, where he assumed the role of Senior Director of International Integration, leading these company processes in Brazil, Central America, Japan, and China.
Later, in 2009, he arrived in Chile to lead the D&S-Walmart integration process. His responsibilities included the implementation of a new corporate culture and the development of a series of value-creating initiatives. In 2013, he became Director of Operations for Walmart Chile.
In 2016, he assumed the position of Commercial Vice President of Walmart Chile, in charge of developing the strategy and overall management of all commercial initiatives, for both brick-and-mortar stores and the digital channel and led the Company’s agro-industrial division in the country. During his 10 years in Chile, he also developed and launched the Business Intelligence and Data Analytics division.
In January 2019, he was appointed Chief Administration Officer for Walmart in Chile and Argentina, where he was responsible for implementing the company’s real estate strategy in both countries, fostering the construction of new stores and remodeling of some existing locations.
Gonzalo Gebara. Photo by Mario Toneguzzi
Gebara joined Walmart Canada in his current role in February 2023.
Gebara loves the intensity that is part of the retail industry.
“We’re open seven days a week, all day long. We check sales, this time of the year, probably by the hour. It’s intense and the other thing that I love is this is a people business. It’s where people make the difference. We learn by working together, by leaning in, by supporting each other. The human connections that we have in our, in our stores, in our DCs, in our fulfillment centres, and how our teams support each other and bring this whole company to life, it’s something that makes me very proud. We’re a group of committed individuals that we all love our culture, love the purpose that we work for, and we just want to do it a little bit better every day to support customers, associates, and community,” said Gebara, who loves to regularly visit the places where the company operates.
Gonzalo Gebara. Photo by Mario Toneguzzi
“Every week I’m out there and in different ways. When I drive back home, I stop in the store, I just walk around, just connect with associates.
“Sometimes I walk on my own. You have to be on the ground. You have to be there. Mainly to support the teams. Not to check, to support. We have a strong team, strong leadership. You have to have a very well oiled system to manage 400 and some stores across all of Canada, coast to coast to coast, all over the place.
“I don’t take any credit for it because this whole system was created before my time, but I think I like the way in which we manage the business, we have feet on the ground and deploying all of our resources to stores and DCs.”
