64 ms·

What you're saying makes sense for things like telecoms, where the government is actively covering for the incumbents, but makes no sense for retailers.

by vkou 4y ago

version_five 4y ago
Look at the grocery market. Lowe's is another retailer I just remembered. We have home depot, but last I checked Rona, Kent, etc represent the rest of the competition in DIY stores
- vkou 4y ago
  So what? What about the grocery market? What does that have to do with the price of butter? In the US it's also consolidating into a few giant incumbents. Do I get to blame that on government regulation, too? Which regulation? Again, I understand why Canada has an uncompetitive telecom, banking, and airline sector. But exactly what government intervention do you think is responsible for Nordstrom and Target failing to succeed in it? What intervention and regulation uniquely and unfairly advantages retail incumbents? Please be specific.
jt2190 4y ago
Supply chains are a massive part of retailing, and they are are not fungible across countries: All goods sold in Canada have to comply with Canadian laws. That typically means repackaging to comply with product labeling and language laws, but there are other things. Canadian consumers do not have the same expendable income as do U.S. consumers. The net effect is higher operating costs and lower margins at baseline. When the economy gets tougher that margin matters. Edit: Note that I’m not saying whether this approach is good or bad for Canada as policy, but the idea that there are no policies that shape the retail landscape is simply not true.
- 908B64B197 4y ago
  > All goods sold in Canada have to comply with Canadian laws. That typically means repackaging to comply with product labeling and language laws, but there are other things. From my experience, most items I purchase already have French labelling on them. > Canadian consumers do not have the same expendable income as do U.S. consumers. The net effect is higher operating costs and lower margins at baseline. When the economy gets tougher that margin matters. Why is that? 20% drop is huge.

What you're saying makes sense for things like telecoms, where the government is actively covering for the incumbents, but makes no sense for retailers.

by vkou 4y ago

What you're saying makes sense for things like telecoms, where the government is actively covering for the incumbents, but makes no sense for retailers.

version_five 4y ago

Look at the grocery market. Lowe's is another retailer I just remembered. We have home depot, but last I checked Rona, Kent, etc represent the rest of the competition in DIY stores

vkou 4y ago
So what? What about the grocery market? What does that have to do with the price of butter? In the US it's also consolidating into a few giant incumbents. Do I get to blame that on government regulation, too? Which regulation? Again, I understand why Canada has an uncompetitive telecom, banking, and airline sector. But exactly what government intervention do you think is responsible for Nordstrom and Target failing to succeed in it? What intervention and regulation uniquely and unfairly advantages retail incumbents? Please be specific.

jt2190 4y ago

Supply chains are a massive part of retailing, and they are are not fungible across countries: All goods sold in Canada have to comply with Canadian laws. That typically means repackaging to comply with product labeling and language laws, but there are other things. Canadian consumers do not have the same expendable income as do U.S. consumers. The net effect is higher operating costs and lower margins at baseline. When the economy gets tougher that margin matters. Edit: Note that I’m not saying whether this approach is good or bad for Canada as policy, but the idea that there are no policies that shape the retail landscape is simply not true.

908B64B197 4y ago
> All goods sold in Canada have to comply with Canadian laws. That typically means repackaging to comply with product labeling and language laws, but there are other things. From my experience, most items I purchase already have French labelling on them. > Canadian consumers do not have the same expendable income as do U.S. consumers. The net effect is higher operating costs and lower margins at baseline. When the economy gets tougher that margin matters. Why is that? 20% drop is huge.