While browsing the goods at a Value Village store in Toronto, Evan Boyce spotted something he didn’t expect: A used vase for sale with a Value Village price tag of $8.99. Then he realized the original price tag was still on — and to buy it at a Dollarama store would have cost only $3.
“Three times what it would have cost brand new …It’s pretty ridiculous, right? Just kind of feels like a rip off to be honest,” said Boyce, a 30-year-old who works for a renewable energy company.
For years, many Canadians have relied on Value Village to buy used goods for cheaper than other retailers. It’s one of the biggest and most popular thrift store chains in the country. Now some customers are accusing the company of massive markups on their items.
The examples of questionable pricing at Value Village have been piling up for months. In Courtenay, B.C., one shopper found kids shoes priced at $6.49, while the original tag said $3. A used book at a store in Winnipeg was being sold for double what it would have cost at its previous retailer.
This is the best summary I could come up with:
U.S. private equity firm Ares Management is a majority shareholder, and helped take the company public last year.
The business model is pretty simple: All of its inventory comes from secondhand donations, some of which are collected by non-profit partners.
Consumers mentally organize retailers into certain categories, explained Matthew Philp, a marketing professor at Toronto Metropolitan University.
But Philp said companies can walk a fine line, as customers who feel duped by a retailer are less likely to return.
Value Village says thousands of items come through each of its stores every week, and that staff try to price products accurately.
CBC’s Marketplace and Streets Cents are teaming up to take a closer look into the Value Village pricing controversy.
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