Savers is a well-known thrift store chain that has locations across Canada. With its catchy slogan “Where Bargain Hunters Shop!”, Savers has become a go-to destination for Canadians looking for great deals on used clothing, accessories, furniture, and more. But despite its widespread presence, many shoppers don’t actually know the story behind the Savers brand and who the owner is. In this article, we’ll take a deep dive into the origins and ownership structure of Savers Canada.
The History of Savers
Savers traces its roots back to 1954 when David Gold founded a thrift store called Value Village in San Francisco, California. The store focused on reselling used goods as an affordable alternative to traditional retailers. Throughout the 1950s and 60s, Value Village expanded across the United States through franchising. In 1970, Value Village entered the Canadian market by opening its first store in Burnaby, British Columbia. The brand quickly took off in Canada and became commonly known as “Savers” north of the border.
In 1999, Value Village was acquired by Savers, Inc., a privately held company based in Bellevue, Washington. Savers, Inc. already owned and operated Savers thrift stores in the U.S. at that time. The company rebranded all Value Village locations under the Savers name. However, the Savers brand wasn’t used in Canada where Value Village was already an established name. So the original Value Village stores in Canada continued operations under the Value Village banner.
Over the next two decades, Savers, Inc. continued growing through acquisitions. It bought out smaller thrift chains across North America and Australasia. In 2008, Savers, Inc. was itself acquired by a private equity firm called Leonard Green & Partners. Under new ownership, the company accelerated expansion by opening more thrift stores across the U.S., Canada, and Australia. Most new locations were opened under the Savers name, except in Canada where Value Village remained the brand of choice.
Current Ownership and Management
Today, Savers is part of a retail empire called The Savers Group. This company consists of four main brands:
- Savers – Operates thrift stores in the United States, Australia, and parts of Canada
- Value Village – Operates thrift stores primarily in Canada
- Unique Thrift Store – Operates thrift stores on the U.S. West Coast
- Crossroads – Operates upscale thrift stores on the U.S. East Coast
The Savers Group entity was created in 2017 to consolidate ownership of all these brands under one corporate umbrella. The parent company behind The Savers Group is still the private equity firm Leonard Green & Partners. They acquired 100% ownership of Savers back in 2008 and have maintained control of the retailer since then through various mergers and reorganizations.
So in summary, Savers Canada is owned by the U.S.-based holding company The Savers Group, which is wholly owned by the private equity firm Leonard Green & Partners. There is no longer a separate Savers, Inc. entity like there was prior to 2008. Operationally, Savers locations in Canada consist of a mix of stores under the Savers banner and ones still branded as Value Village.
Savers Canada Store Count and Locations
As of 2023, there are 282 Savers locations in Canada. The vast majority of these stores (over 200) are still branded as Value Village rather than Savers. However, in recent years, Savers has been appearing on more storefronts as rebranding efforts continue across the country. Here is a breakdown of Savers stores in Canada by province:
| Province | Number of Savers Stores |
|---|---|
| Ontario | 89 |
| British Columbia | 61 |
| Alberta | 46 |
| Quebec | 35 |
| Manitoba | 17 |
| Nova Scotia | 11 |
| Saskatchewan | 9 |
| New Brunswick | 8 |
| Newfoundland and Labrador | 5 |
| Prince Edward Island | 1 |
Savers has at least one store in every province except Nunavut, Northwest Territories, and Yukon. The greatest concentration of stores is in Ontario, followed by British Columbia and Alberta. In terms of major metropolitan areas, Savers has a strong presence across Greater Toronto, Metro Vancouver, Calgary, Edmonton, Ottawa, Montreal, and Winnipeg.
Financial Performance and Outlook
As a privately held company, The Savers Group does not disclose detailed financial results for its brands. However, some insights can be gleaned from industry data and news reports. In general, the thrift industry saw steady growth for many years driven by increased consumer interest in secondhand goods. But the COVID-19 pandemic resulted in temporary closures and sales declines for many thrift retailers.
In 2020, Savers Canada (Value Village) reportedly experienced a 50% drop in sales volume due to lockdowns and reduced capacity limits. Performance improved in 2021 as stores reopened, but some locations have struggled with inventory shortages and labor challenges. Across all brands, The Savers Group is estimated to generate between US$1-2 billion in annual revenue. The company was reportedly exploring a sale in 2021, though further details of any deal have not been made public.
Going forward, analysts expect thrift and resale stores to continue gaining popularity thanks to bargain-conscious millennials and Gen Z. Savers Canada will need to focus on accelerating its rebranding, improving inventory management, enhancing the in-store experience, and investing in e-commerce. The involvement of private equity owners typically implies an emphasis on cost cutting and profit generation to allow for a future exit opportunity. If the business remains on solid footing, Savers could potentially pursue an IPO down the road.
Savers’ Branding and Value Proposition
The Savers brand is built around offering extremely low prices on secondhand items across a wide range of categories. Slogans like “Wow! What a Deal” and “Find Your Fun for Less” convey the thrift chain’s focus on value and savings. Marketing emphasizes the treasures and “hidden gems” that shoppers might discover each time they browse a Savers store thanks to frequently updated inventory. The brand caters not just to low-income consumers but anyone who relishes finding a great bargain.
Store interiors feature bright lighting, wide aisles, and visually impactful signage to draw attention to the latest product deals. Shoppers are encouraged to “hunt” for deals throughout the store. Special areas like “The Boutique” and “The Denim Den” merchandise apparel by style to optimize the shopping experience. Savers positions itself as a sustainable shopping choice by repurposing gently used goods, with clothing making up around 60% of inventory.
While the Value Village name is still prominent in Canada, the growing use of Savers branding aims to create a consistent experience across the thrift chain’s global footprint. Most new store openings and remodels in Canada now use the Savers name. This transition may accelerate once consumers have greater familiarity with the Savers banner.
Criticism and Controversies
Despite being a popular shopping destination for bargain hunters, Savers/Value Village has faced some criticism and controversies in recent years. One of the most common complaints is that prices are too high for a thrift store. Some shoppers feel misled by the promises of “amazing deals” and low prices. There is a perception that Savers has become more focused on profits amid private equity ownership.
Savers Canada has also faced accusations of misleading marketing tactics. In 2015, a CBC Marketplace investigation reported finding regular retail goods marked with inflated “suggested” prices alongside Savers price tags. This appeared to exaggerate the savings for consumers. Savers agreed to be more transparent about pricing practices following the report.
Additionally, some nonprofit partners have raised concerns about donation bin practices and low payout rates from Savers. Though Savers touts its support of charities through donated goods, some groups say the financial compensation they receive has declined over time.
On the environmental front, sustainability advocates argue Savers contributes to textile waste by shipping unsold goods to the landfill. They believe more clothing should be recycled. Savers claims it is ramping up recycling efforts and keeping unusable textiles out of landfills. But critics say there is room for improvement.
Savers’ Business Model and Operations
Savers relies on a combination of direct donations and purchases from third-party vendors to stock its shelves with secondhand merchandise. Donations from individuals make up approximately 60% of inventory, while the remaining 40% is sourced from wholesalers and bulk apparel buyers.
Individuals can directly donate used items at any Savers store. Donation attendants inspect, sort, and categorize donations before passing them to pricing teams. Savers then sells the items at a marked-up price—usually at least double what the organization paid for an item. Any donations that are too worn, damaged, or otherwise unsellable are sold to textile recycling firms.
Besides direct donations, Savers has partnerships with nonprofits who operate donation bins. These items are transported to Savers distribution centers for processing. However, some critics argue Savers’ compensation rates to charity partners are quite low compared to the profits generated.
Purchased inventory comes from apparel wholesalers, manufacturers, distributors, and brokers. Savers buys truckloads of unsold or returned goods in bulk for pennies on the dollar. This includes brand new items with tags still attached in some cases. Such bulk purchases allow Savers to consistently refresh its product selection.
Once items hit the stores, the merchandising team arranges products by style, brand, color, and other attributes. Clothing represents the largest share of sales, but Savers also carries accessories, shoes, books, furniture, housewares, toys, and other goods. Most items are priced between $5-10. Anything unsold after 30-60 days is removed from the sales floor.
How Does Savers Price Items?
Savers uses a variable pricing model based on item quality, brand, desirability, and seasonality. Pricing specialists assess each donated item to determine a fair market value. However, their goal is to price items as competitively as possible to attract deal-seeking shoppers. Savers also monitors selling prices at nearby thrift and consignment stores.
New arrivals from donations or bulk buys are typically priced at the higher end since they represent the freshest inventory. Clearance sections feature older merchandise marked down progressively until sold. Some branded and luxury goods may be priced at a premium. Anything broken, stained, or with other damage is priced much lower.
Savers locations in more affluent areas tend to have higher prices compared to stores in middle or low-income neighborhoods. Seasonal goods also command temporarily inflated pricing after holidays when demand is highest. But overall, Savers aims to provide the lowest viable prices that will maximize inventory turns and profitability.
How Does Savers Source Its Inventory?
As noted earlier, Savers mainly sources used merchandise from two channels:
- Public Donations: Individuals can directly donate gently used items at any Savers location. Stores have on-site donation centers to receive and process these goods. Donations make up approximately 60% of a typical Savers store’s inventory.
- Bulk Purchases: Savers buys truckloads of new, used, and overstock apparel from wholesalers, distributors, and brokers for pennies on the dollar. These bulk buys represent around 40% of inventory.
Having this mix of donations and bulk purchases allows Savers to regularly refresh its product selection. Donated items provide unique discoveries shoppers love when treasure hunting. Meanwhile, buying truckloads of new wholesale goods ensures Savers always has appealing basics and staples in stock even if donations are low.
In terms of logistics, individual stores are replenished with inventory from regional Savers distribution centers. These DCs aggregate both donations and purchased goods before redistributing them across the store network. Savers utilizes IT systems to track which products are trending and optimize distribution.
Does Savers Actually Help Local Communities?
Savers portrays its business model as mutually beneficial for communities. By encouraging donations, the company provides an easy way for people to declutter and keep used items out of landfills. These donated goods are then resold to support charitable work through Savers’ parent non-profit, Community Aid. On the surface, this seems like an environmentally and socially conscious approach.
However, critics argue Savers’ community benefits are overstated. They point to low compensation rates paid to nonprofit partners as evidence that charitable aims are secondary to profit maximization under corporate ownership. Only around 3% of Savers’ revenue reportedly goes back to Community Aid for distribution to local causes.
Some also dispute whether reselling donated items truly reduces waste, since unsold inventory still often gets landfilled. And complaints have arisen over donation bins that allegedly mislead people into thinking their local charities directly benefit. In short, Savers has drawn skepticism from some over whether its thrift operations truly provide substantial community value.
Supporters counter that Savers gives new life to millions of pounds of used goods that would otherwise be tossed out. Its stores offer affordable shopping options in many neighborhoods not served by traditional retailers. And even at low rates, Community Aid distributions still provide funding for worthy local programs that aid families in need.
How Does Savers Treat Its Employees?
Like many major retailers, Savers has faced criticisms regarding working conditions and treatment of employees. The most common complaints include:
- Low wages – Savers pays most retail employees close to minimum wage with limited benefits.
- High workload – Staff must meet stringent daily quotas for item processing and tagging.
- Safety issues – Some workers report injuries from repetitive tasks and lifting.
- Lack of accommodations – Employees with disabilities claim requests for accommodations are often denied.
- Discrimination – Various complaints have alleged racial bias and discrimination in promotions and pay.
On the plus side, Savers notes that employees can earn quarterly bonuses for meeting sales and productivity goals. The company also claims over 75% of store managers are promoted from within, suggesting viable career paths. However, labor groups counter that executive pay and profits are prioritized over fair compensation for retail staff.
In recent years, Savers has faced numerous lawsuits over working conditions and labor practices. Settlements have been reached in some class action cases over issues like employee classification and unpaid wages resulting from off-the-clock work. Such controversies suggest Savers still has progress to make in supporting its retail employees.
Conclusion
Savers has grown from humble thrift store origins to become one of the largest resale chains in North America and Australia. It operates more than 300 stores across Canada, with a mix of Savers and Value Village locations. Ownership today rests with the private equity firm Leonard Green & Partners, which acquired Savers in 2008.
The Savers business model revolves around selling donated used goods alongside new bulk-purchased inventory at bargain prices. Its brand proposition focuses on the “treasure hunt” shopping experience and finding great deals. However, Savers has faced criticism on issues ranging from misleading pricing tactics to questionable community benefits and treatment of employees.
Going forward, Savers will need to proactively address controversies and evolve its practices in areas like sustainability and labor relations. But with thrift and resale gaining popularity, the underlying fundamentals of bargaining hunting and value proposition remain strong. Savers is positioned to continue growing if it can maintain trust with shoppers and communities while also upgrading the in-store experience.
