Inflation also affecting Quebec thrift stores

The rising cost of many consumer goods has fuelled Quebecers' interest in the circular economy, particularly in buying second-hand items. Yet businesses that specialize in selling used items are also being hit by inflation, but their room to manoeuvre to counter its effects is limited.

At Orapé, a Plessisville-based organization south of Trois-Rivieres operating a used goods shop that funds a food aid service, among other things, prices have been raised by an average of 10-15 per cent.

"This is the maximum margin we gave ourselves," said director Valérie Bédard. "We had to think very strategically to keep a sufficient profit margin while remaining affordable for our clientele and respecting our basic mission, which is to offer items to low-income people."

Although the organization owns its building, it must still deal with increased costs for electricity and minor maintenance work, salary increases for staff, and especially the rising cost of gasoline, a budget item that is 30 to 50 per cent more expensive than before.

"We go to people's homes to pick up items, and our truck doesn't run on air," joked the director.

Since the price of second-hand products sold at Orapé varies from a few pennies for trinkets to about $150 for household appliances, the margin of error that the organization can make remains slim.

"You have to keep in mind that people come to buy used with a view to finding something nice, good, cheap and they don't expect to pay buckets,'' said Bédard. "There are people who understand that we have no choice but to raise our prices, but others who feel that we should practically give away our items because they are given to us."

For Renaissance, which has 34 locations in Quebec, it is mainly the rapid and sustained increase in salaries that has eaten into the organization's budgetary margin.

"It's true that we had to increase our prices, but we couldn't keep up with the inflation rate," said general manager Éric St-Arnaud. "We did market studies beforehand to make sure we stayed within the average.

"We don't want to pass on all the increases we are experiencing, but when rents, taxes, salaries and gasoline increase and we offer salaries above the minimum, we have to adjust to keep our employees above the poverty line."

In addition to reviewing the entire transportation system, which has resulted in a 10 per cent reduction in mileage and, incidentally, in the number of litres of gasoline consumed, Renaissance is considering automating some of its operations to reduce its operating costs.

"We've started talking about computerization, robotization in certain sectors, such as fast boxes," said St-Arnaud. "We're looking at that because the cost of labour is going up, and we want to be more efficient, but we're still going to put people to work because we're still a not-for-profit organization whose mission is to help people integrate the labour market."

TARGETTING NON-ESSENTIALS

Gens au travail, which runs the Meubletout and Boutique aux fringues businesses in McMasterville in the Montérégie region, has adopted a different strategy to avoid penalizing the most disadvantaged, even though the clientele is very diverse.

"In doing so, the used items of first necessity will not cost more, but if they wish to buy second-hand goods that are more beautiful or more luxurious, they will have to pay more," said director Marie Motte. "Someone who needs a chest of drawers or basic crockery will be able to get it for cheap, but for the more exceptional items, such as a vintage piece of furniture or a beautiful set of crockery with gilding, we will raise the price."

Delivery charges have also been increased since 2022 to compensate for the increase in the price of gas.

"It was too much for us to bear," said the director. "But fortunately, it doesn't affect the customers who come to the shop to pick up the items. We still have a lot of awareness-raising to do so that people think of us rather than putting their furniture on the road or taking it to the ecocentre."

INCREASING CLIENTELE, STABLE PRICES

Other organizations have decided not to increase the price of their items, or only slightly.

"We're lucky, because we're not very affected," said Danielle Pettigrew, president of the Centre des générations, which runs the Grenier des générations in Boucherville. "It's not inflation that has increased the price of our items."

To compensate for the soaring price of gasoline, however, the organization began charging delivery fees two years ago.

The increase in traffic, and incidentally in sales, has prevented SOS Dépannage in Granby from raising its prices too much.

"Apart from the 50 cents here and there, nothing major," said director Patrick St-Denis. "Sales are doing well. We've seen an increase of about 20 per cent in the last few months, so that doesn't justify raising our prices considerably."

The same scenario has emerged at the Ressourcerie du Granit, in Lac-Mégantic, where diversification and an increase in the clientele have made it possible not to touch prices.

Since 2004, we have had to increase our prices by about 16 to 18 per cent, or less than 1 per cent per year," said director Robert Bureau. "We keep in mind that the people who come here, whether they live in poverty or not, come here to buy things at that price and that it must remain accessible."

Thanks to its goodwill, the Ressourcerie du Granit still manages to make a profit, part of which is redistributed to the community, despite an increase in the cost of landfill, gas and salaries.

This report by The Canadian Press was first published in French on March 19, 2023.

This story was written with the financial support of the Meta Exchange and The Canadian Press for news.