The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Just wanted to ask you a little bit about your SG&A margin, which you explained during your commentary was -- like the percentage margin was
flat year-over-year after taking into account COVID costs. Now there have been times in the past when sales are growing. You do get operating
leverage on your SG&A and show a lower margin because there's a fixed cost element to that, but now you're showing a flat margin. So are there
cost pressures in SG&A as well, like I'm thinking labor costs, minimum wage? So if you could just drill down a little bit on SG&A.
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. And then the other question -- another question I have also addressing Ontario. With the limitation on the sale of nonessentials, did you --
like did you change the planogram in your Ontario stores? So did you offer more -- did you change the mix of consumables and food, for example,
or any other consumables? Or is it the same planogram?
Question: Peter Sklar - BMO Capital Markets Equity Research - Analyst
: Okay. I get that. And then just finally, I know you get this question every call just on higher price points. But has your language changed around
that, given that we're 1 quarter closer to higher price points than the inflationary pressures you're seeing?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Just given all the challenges with shutdowns and changes in consumer behavior, wondering how you're positioning yourself for assortments in
summer and fall? And do you anticipate inventory -- I know you talked about your deeper inventory relative with the container comment. But do
you anticipate any inventory challenges associated with some of these demand spikes?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. And with respect to addressing the changes in consumer behavior that have happened rapidly for events, for example, more desire for certain
seasonal goods, are you changing the space allocated for certain categories to meet that consumer's need?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. And just a few general comments on the consumer perception of Dollarama through the pandemic. I saw some grumbling on social media,
and it wasn't Dollarama's choice, obviously. But that they have gone to the store and they weren't able to obtain what they wanted to and grumbling
about what was available at the store. Are you -- in your monitoring of consumer perception of Dollarama, are you noticing any changes on the
brand as a result of all these pandemic restrictions that you have to go through?
Question: Vishal Shreedhar - National Bank Financial, Inc., Research Division - Analyst
: Okay. And just a last 1 here. Given that the consumer is in reasonably good financial shape, do you think that incrementally dampens the appetite
for a value brand like Dollarama? And obviously, your comps aren't suggesting that. But wondering, looking forward, if you're seeing any of that
incrementally on the margin.
Question: Patricia A. Baker - Scotiabank Global Banking and Markets, Research Division - Analyst
: Most of my questions have been asked and answered. However, just 1 follow-up on the discussion of the self checkout. And we did reference the
fact that you start first with wanting to ensure that you have a great customer experience. I'm just wondering what your setup is in the stores where
you have self checkouts? How are you manning the cash registers? Or do you have somebody at the cash register even where you have the self
checkout? So that the consumer makes the choice about what they want to do?
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