Good morning. I’m Dawn Calleja, editor of Report on Business Magazine. I’ll be diving into our annual CEOs of the year, but I first want to talk to you about Dollarama’s Neil Rossy, the overall winner for 2024. Yesterday, the company reported a strong Q3 and announced plans to build even more stores in Canada. More on that and the Rossy vision below, but first:
In the news
UnitedHealthcare CEO Brian Thompson kept a low public profile before he was targeted in a fatal New York shooting. More on that below.
FinTRAC, Canada’s anti-money-laundering watchdog, has signed a memorandum of understanding with U.S. regulators over Canadian banks with cross-border operations, in the wake of TD Bank’s AML scandal.
Canada is also one of the first countries set to be examined for its ability to tackle financial crime under a global task force’s new, more stringent criteria.
A family of four could pay $800 more for groceries in 2025 because of climate change, labour challenges, new policies and geopolitical events, according to a new report.
Happening today
- Statistics Canada reports the country’s trade balance for October, while the Ivey Purchasing Managers Index gives markets a pulse on the economy.
- Bitcoin backers are watching to see if the cryptocurrency can stay above US$100,000 after hitting the milestone on Wednesday.
- Non-bank earnings include Lululemon Athletica Inc., Dollar General Corp. and Hewlett Packard Enterprise Co.
Earnings
Banks warn trade and immigration uncertainty are clouding outlook
Royal Bank of Canada’s CEO Dave McKay says tighter immigration and trade policies are clouding the banking industry’s outlook for next year, and political leaders need to resolve the concerns causing uncertainty.
As RBC and National Bank of Canada both reported fourth-quarter earnings that beat analyst expectations on Wednesday, leaders of both lenders cautioned of risks to the economy as the banking sector moves into a new fiscal year, Stefanie Marotta reports. The banks posted higher-than-expected revenue growth, even as provisions for loans that could default grew.
Up next: Toronto-Dominion Bank, Bank of Montreal and Canadian Imperial Bank of Commerce wrap up earnings week for the Big Six lenders today. Bank of Nova Scotia missed analysts estimates on Tuesday. You can find more on the banks’ results here.
CEO Neil Rossy of Dollarama is named “Global Visionary of the Year” in Report on Business MagazineThe Globe and Mail
In focus
How Dollarama got it right
At the end of 2023, when I sat down to write the introduction to Report on Business Magazine’s annual CEO of the Year package, I remember thinking: Well, that was an absolutely gobsmacking year in news – but surely things can only go up from here!
And yet, here we are – again. I’ll spare you the litany of the global calamities we currently face, but it’s why I’m so excited about CEO of the Year – because it’s a rare opportunity for us to tell inspiring stories about leaders from five vastly different sectors, from retail to insurance to space to fleet management to potatoes.
Our overall winner is a retail savant whose chain has collected more of my hard-earned cash (and brought more joy into the lives of my children) than possibly anywhere else: Neil Rossy, CEO of Dollarama Inc.
Yesterday, the company hiked its long-term growth target to 2,200 locations by 2034, up from the original plan to expand to 2,000 locations. Third-quarter sales grew 5.7 per cent year over year, to nearly $1.6-billion, driven by the opening of 60 new stores in the previous 12 months and rising sales at existing stores.
Over the past 30 years, the chain has become an indelible part of Canadian life. As Nicolas Van Praet notes in his cover story, 70 per cent of Canadians visit a Dollarama store at least once a month, and 29 per cent visit at least once a week. And its business model seems to defy wider economic cycles. “It does well when people are pinched for money,” Van Praet says, “and it does well when they aren’t.”
The Rossys know retail. Neil’s great-grandfather fled Turkish-occupied Lebanon in the early 1900s and settled in Montreal, peddling brooms and other everyday items before opening his first general store in 1910. More than 80 years later, Neil’s dad, Larry – in charge of the family business since 1973 – opened a 2,000-square-foot dollar store in a village in the Gaspé as a bit of an experiment. Needless to say, it was a hit.
Neil succeeded his father as CEO in 2016 not because Dollarama is a family dynasty – the Rossys own just 2 per cent of the public float – but because he was the best person for the job. Since his ascension, sales have doubled, and the number of stores has increased by more than 50 per cent.
But while those green-and-yellow signs are now ubiquitous, Rossy himself is not. In fact, this profile marks his first major interview ever.
And it covers a lot of ground, mostly because Rossy is involved in just about every aspect of running Dollarama. Consider his approach to addressing the chain’s environmental footprint, which has increasingly become an issue for shareholders.
The Rossy profile is just one of five CEO of the Year features in our December issue. Check them out here:
- Innovator of the Year Mike Greenley is at the helm of MDA Space, a 55-year-old Canadian stalwart that, under his leadership, is shooting for the stars – literally – as it aims to become a top contender in the new space race. Bezos and Musk, you’ve been warned.
- Corporate Citizen of the Year Max Koeune runs McCain Foods, a potato juggernaut that sells one out of every four French fries globally. With climate change wreaking havoc on crops, Koeune knew McCain – which relies on a network of 3,500 spud farmers worldwide – had to do something drastic. Enter the farm of the future.
- Strategist of the Year Charles Brindamour has led Intact Financial since its inception. And despite a sharp rise in natural disasters, it’s outpacing its peers, thanks largely to his use of data to finetune its policies. He’s also become a global voice for adaption and, better yet, prevention.
- Newcomer of the Year Laura Dottori-Attanasio gave up a role that could’ve seen her become one of the first women to lead a major Canadian bank. But she couldn’t resist the chance to turn her decades of experience to a new challenge at Element Fleet Management.
Quoted
Brian Thompson of UnitedHealthcare’s insurance unit killed in New York
The Globe and Mail
Brian Thompson, the CEO of UnitedHealth’s insurance unit, was fatally shot yesterday morning outside a Midtown Manhattan hotel in what police described as a “brazen” targeted attack by a gunman lying in wait for him. Thompson’s wife, Paulette, told NBC News that he had received some threats, though she did not know any specifics. Police said the gunman remains at large and they are still investigating a motive.
The outlook
On our radar and reading list
Sky’s the limit: Air Canada plans to bar carry-on bags and implement a seat-selection fee for the lowest-fare customers next year.
Take another look: Eight First Nations in Alberta are asking that a proposed massive carbon capture and storage project be reviewed under the federal Impact Assessment Act.
In the courts: The District of Columbia sued Amazon, accusing the company of secretly stopping fast deliveries to two predominantly Black zip codes, while continuing to charge residents.
Mortgage moves: Why you should have your mortgage paid off at least five to 10 years ahead of retirement.
Morning update
Global markets were mostly higher as sentiment was bolstered by upbeat comments on the U.S. economy from Federal Reserve chief Jerome Powell.
Overseas, the pan-European STOXX 600 was up 0.24 per cent in morning trading. Britain’s FTSE 100 slipped 0.08 per cent, Germany’s DAX gained 0.35 per cent and France’s CAC 40 added 0.2 per cent.
In Asia, Japan’s Nikkei closed 0.3 per cent higher, while Hong Kong’s Hang Seng slid 0.92 per cent.
The Canadian dollar traded at 71.11 U.S. cents.