Dollarama Essay

Established in 1992, Dollarama is one of the largest value retail stores in Canada. Presently, they employ over 13,000 employees and have more than 1000 locations across the country. Dollarama provides its customers with a variety of consumer products, general merchandise, and seasonal items.

Its Customers are able to find a consistent shopping experience with affordable products in convenient locations. The company is the market leader in dollar stores, and are constantly seeking opportunities to expand. Some of Dollarama’s competitors include Dollar Store With More, Great Canadian, and

Dollar Giant. Dollarama has performed well with respect to its competition; the company has five times as many stores as their next best competitor Dollar

Within the value retail industry in Canada, there is plenty of opportunity to grow. There are 31,100 people per dollar store in Canada, whereas in the United States there are only 14,500 people per dollar store. However, even with the success of the business model there are always risks within any corporation.

An important risk that Dollarama faces is in managing their operating costs. Cost Factors such as merchandise costs, foreign exchange rate fluctuations, lease costs, and inflation all contribute to the profitability of the company. If any of these costs were to increase, it would decrease their profits, hurt their margins, and reduce their cash inflows. More recently, Dollarama has increased their price points for certain products to $ 3.50, some to $ 4.00. This was implemented to offset any additional costs from the market that was beyond their control.However, there is no assurance that increasing the prices of certain products will continue to cover additional costs in the future—they have a limited range in which to price products due to their branding as a “dollar” store. Beyond these risks,

Dollarama Inc. as a business has performed very well. They have employed thousands of

Their business model is to offer a broad assortment of everyday consumer products, general merchandise and seasonal items with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Our quality merchandise is sold in individual or multiple units at select, fixed price points up to $4.00. Dollarama is very well positioned within the Canadian Retail sector with a big difference against their competitors. Currently there are two big stores with big ambition to get into the market and compete against Dollarama brand. Those are Dollar tree inc. is the largest operator in US. Nowadays this company has presence in five provinces in Canada with 226 stores in Canada and 13.500 in U.S It has a big potential since it’s new in Canada but with a lot of experience in the neighbour country. The Vice president plans to create up to 1000 stores with the expansion to

Montreal and Quebec City. Miniso, a Chinese retailer of value-based goods similar to Dollarama, is another recent entrant to the Canadian market that is looking to expand further into Dollarama’s home turf. It has up to 500 new locations targeted for the Canadian market at a rate of 35-50 over the