Top News Today/Canada: Dollarama Sees Demand in Canada Softening

Dow Jones03-25 04:30

HEADLINES

Dollarama Sees Demand Cooling in Canada

Dollarama is bracing for softer demand in Canada, a sign that the tougher economic backdrop is now weighing even on budget-conscious consumers.

The Canadian discount chain expects comparable store sales in Canada to rise between 3% and 4% in fiscal 2027, compared with 4.2% in the prior year.

FactSet-polled analysts expect same-store sales of 3.8%.

Rising economic uncertainty, most recently fueled by the U.S.-Israel conflict with Iran and the resulting spike in oil and gas prices, has been squeezing household budgets in recent weeks. Historically, Dollarama benefits when more shoppers trade-down or seek value in their day-to-day shopping.

MDA Space Shares Drop After NASA Shifts Focus to Moon's Surface

Shares of Canadian robotics and satellite systems company MDA Space were under pressure after the National Aeronautics and Space Administration said it was looking at making changes to its planned Artemis mission as part of a renewed focus on returning to the moon's surface.

MDA's shares dropped nearly 10% to settle at C$40.30.

MDA Space said it is monitoring NASA's ongoing discussions regarding the Artemis mission following the announcement the space agency is suspending plans to create a lunar orbital space station known as Gateway and it shifts focus to infrastructure that enables sustained lunar surface operations.

Factory Sales Climb Estimated 3.8% in February

Factory activity in Canada rebounded last month, likely shaking off the slump in auto sales to start the year when vehicle plants in Ontario were shuttered for retooling.

Manufacturing shipments increase an estimated 3.8% in February from a month prior, Statistics Canada said. That would mark the strongest advance in month and a recovery after recent weakness for an industry that has been hit hard by the fallout from the shift in U.S. trade policy and tariffs.

Statistics Canada said the largest increases in February were recorded in transportation equipment and food.

Bank of Montreal Teams With CME Group, Google Cloud on Tokenized Cash Platform

Bank of Montreal plans to launch tokenized cash capabilities that will allow institutional clients to move funds securely at all times.

The Canadian bank will offer 24/7 tokenized cash services using derivatives marketplace CME Group's network on Google Cloud Universal Ledger. The result aims to be a bank-anchored framework that will enable clients to convert dollars into a tokenized instrument for use with margined products at CME.

Bank of Montreal said it will be the first bank to offer CME's tokenized cash solution on Google Cloud Universal Ledger.

Boralex Shares Rise on Strategic Review of Alternatives

Boralex shares rose after the renewable energy company said it has launched a review to consider alternatives.

Shares gained 7.5% to end at C$33.00.

The Montreal-based renewable power producer late on Monday said its board has formed a special committee to review and recommend strategic alternatives.

The company develops and operates renewable wind, hydroelectric and solar facilities, and provides energy storage solutions in the markets of Canada, France and the U.K.

Spartan Delta Adopts Shareholder Rights Plan to Guard Against Hostile Bids

Spartan Delta has adopted a shareholder rights plan, often called a poison pill, a defensive measure to protect the company from any takeover attempts.

The Canadian oil and gas exploration and production company said Tuesday that the rights plan is consistent with modern rights plans adopted by other Canadian public companies.

Spartan said the decision to adopt the shareholder rights plan is to provide the board and shareholders of Spartan with an adequate amount of time to evaluate any offers and explore other alternatives.

Goeasy Secures Amended Financing Deals with Lenders Amid Sharp Credit Deterioration

Goeasy has reached a set of amended financing agreements with its lenders, stabilizing its funding base after a sharp deterioration in fourth-quarter credit performance.

The embattled provider of nonprime consumer lending said Tuesday that it has obtained covenant waivers for the fourth quarter and adjustments to future financial tests across its major credit facilities, allowing it to remain in compliance despite a wave of charge-offs and writedowns.

Goeasy said its C$550 million syndicated revolver remains in place but now carries a 100-basis-point-higher interest spread and a borrowing-base cap that limits availability to C$440 million without lender consent.

Winpak Gets TSX Green Light to Renew 5% Share-Repurchase Program

Winpak intends to renew its share-repurchase program to buy back up to 5% of its issued and outstanding shares over a one-year period.

The Winnipeg, Manitoba-based packaging manufacturer said Tuesday that the Toronto Stock Exchange approved its plan to launch a normal course issuer bid to buy back up to 2.9 million of its shares for cancellation.

At Monday's closing price, the value of the shares intended for buyback would be worth about C$135.4 million.

Winpak can begin buying back shares starting March 26.

TALKING POINT

More Canadians Are Hoarding Cash

By Meera Raman for the Globe and Mail

Even before the latest conflict in the Middle East began, Canadians were planning to cut back on discretionary spending in 2026.

Now, with higher oil prices and expectations that interest rate hikes could rise, financial planners say that more people are holding on to cash as a safety blanket.

But planners warn that leaning too heavily on cash can come with trade-offs that affect long-term financial security.

"Uncertainty is pushing Canadians to be more cautious, which can be healthy in the short-term, but staying too defensive for too long a period of time can hurt your long-term financial outcome," said Simon Wong, a certified financial planner and head of financial planning at Blueprint Financial.

A survey conducted by TD Bank near the end of 2025 found that 67 per cent of Canadians planned to reduce spending in 2026, up from 51 per cent the year before. Recent data from RBC Economics suggests they are following through: While overall credit card spending modestly increased in February, RBC found consumers continued to scale back on discretionary purchases.

At the same time, Canadians are parking more money in cash. A report released this week by consulting firm McVay and Associates found that demand deposits -- money held in savings and chequing accounts -- grew 6 per cent year-over-year in January.

The report uses data collected from the Bank of Canada and individual bank results from the Office of the Superintendent of Financial Institutions.

Even as Canadians look to save more, many lack a clear plan for what that money is for. The TD survey found that only 36 per cent have a formal financial plan for 2026.

"This cautious behaviour is understandable, but it does have mixed long-term consequences," Mr. Wong said.

On one hand, pulling back on discretionary spending can help people build stronger financial foundations. Households can save more, rely less on debt and build up cash buffers. But there are downsides if that caution goes too far.

Typically, if you're holding on to cash without a clear purpose, such as a six-month emergency fund or for an upcoming large purchase, then you have too much, Mr. Wong said.

Hoarding cash can hurt your long-term growth as inflation will "quietly erode" the value of cash, Mr. Wong said. Staying on the sidelines can also mean missing out on investment opportunities.

"If you wait for certainty, you usually miss those early market rebounds, you miss on those lower asset prices, and you miss on compounding over time."

Holding excess cash can also shape bigger financial decisions, Mr. Wong said. It can lead people to delay major milestones, such as buying a home, or avoid taking career risks they might otherwise be prepared for.

However, planners know many people, especially those nearing and in retirement, feel the need to keep cash on hand as a source of comfort. Even those with healthy nest eggs struggle to spend, fearing they will outlive their money.

Mr. Wong suggests a more balanced approach by maintaining a cash buffer for an emergency fund while continuing to invest, even if that means putting smaller amounts in the market.

Still, Canadians have historically kept too little cash on hand, so the recent shift could help correct that, said Colin White, a certified financial planner and chief executive officer of Verecan Capital Management.

"The average person doesn't keep enough cash on hand. For some people, this is just getting them back to where they should have been all along, even if it's for the wrong reasons," Mr. White said.

The problem, he said, is when people hold on to cash while carrying higher-interest debt. "The number of people that are sitting with money in their chequing account but a balance on a line of credit would absolutely astound you."

Expected Major Events for Wednesday

05:00/JPN: Feb Supermarket sales

05:00/JPN: Jan Indexes of Business Conditions - Revision

07:00/UK: Feb Producer Price Index

07:00/UK: Feb CPI

09:00/GER: Mar ifo Business Climate Index

09:30/UK: Jan UK House Price Index

11:00/US: 03/20 MBA Weekly Mortgage Applications Survey

12:30/US: Feb Import & Export Price Indexes

12:30/US: 4Q International Transactions

12:30/CAN: Jan Employment Insurance

12:30/US: 4Q U.S. International Investment Position

14:30/US: 03/20 EIA Weekly Petroleum Status Report

23:50/JPN: Feb Services Producer Price Index

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Wednesday

AquaBounty Technologies Inc $(AQB)$ is expected to report for 4Q.

(MORE TO FOLLOW) Dow Jones Newswires

March 24, 2026 16:30 ET (20:30 GMT)

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