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Dollarama

Dollarama Inc.
Public
Traded as TSX: DOL
S&P/TSX 60 component
Industry Retail
Founded 1992
Headquarters Montreal, Quebec, Canada
Key people
Larry Rossy, Founder
Peter Kowalczyk, President and CEO.
Products Cleaning supplies, Toys, Candy, Grocery, Gifts, Healthcare products, Kitchenware, Stationery, Party Supplies, Hardware.
Revenue $1.420 billion CAD (2009)[1]
$116.8 million CAD
Website www.dollarama.com
A standalone Dollarama store in Toronto's Parkdale neighbourhood.
Dollarama in Richmond Hill, Ontario

Dollarama is a chain of over 900 dollar stores across Canada. The company is headquartered in Montreal and, since 2009, has been Canada's largest retailer of items for three dollars or less.[2] The first Dollarama store was opened at the shopping centre "Les promenades du St-Laurent" in Matane as a subsdiary of the now defunct Rossy S variety store chain (not to be confused with Rossy). Dollarama has stores in every province of Canada; Ontario has the most stores.[3]

Many of the Dollarama stores are located where there once were BiWay stores, a defunct chain of Canadian discount retail operations intended to compete with retailers such as Zellers, Kmart and Wal-Mart. Zellers and Kmart closed after a series of dubious financial transactions involving a new owner of the parent operation.[4]

Many items are priced at $1.00.[5] In early 2009 Dollarama introduced items priced up to $2.00. Due to the positive response from consumers to the multi-price point strategy, the store began to introduce items at $2.50 and $3.00 in August 2012. All Dollarama stores now accept Interac debit payments.

The price level increase allowed the store to acquire products from a greater variety of sources, including closeout sales.[6] and adjustments may eventually happen to all prices.[7]

Amongst Canadian dollar store chains, Dollarama has pioneered by sourcing customized products from manufacturers, evidenced by the numerous in-store items which have Dollarama's name printed on the product labels. In mid-2009 it joined other retail chains in rolling out its own store brand, "D". Unlike most dollar/discount stores, it sources products directly from manufacturers, rather than local distributors.

Lawrence Rossy was the head of the parent company of Dollarama, S. Rossy Inc., which used to operate the Rossy discount department store chain. He founded the privately held chain in 1992 and created a profitable business that became very successful.[5] In November 2004, 80 percent of the chain was sold for $850 million US, to a private equity fund, Bain Capital, of Boston, Massachusetts.[5]

Some Dollarama stores have more than 20,000 square feet of space, particularly in Montreal's Pierrefonds-Roxboro borough on Pierrefonds Blvd. and at Harwood Blvd. in Vaudreuil-Dorion.

In 2013, Dollarama was planning to expand its market to Latin America, and made an eight-year agreement to share its business expertise and provide sourcing services to Dollar City, a chain of dollar stores in Central America.[8][9]

See also

References

  1. ^ "Fourth Quarter Earnings Release" (PDF). Dollarama Inc. 07-04-11. Retrieved 29-04-11. 
  2. ^ "About Dollarama". Dollarama. Retrieved 29-04-11. 
  3. ^ "Dollarama History". Dollarama. Retrieved 29-04-11. 
  4. ^ "Stores we miss". MSN Money. Retrieved 25-02-12. 
  5. ^ a b c "Dollarama undergoes major transformation". Montreal: National Post. June 1, 2006. 
  6. ^ Silcoff, Sean (September 18, 2008). "Million-dollar question: Are $5 stores up next?". Globe And Mail. 
  7. ^ http://www.cbc.ca/news/canada/montreal/dollarama-could-raise-prices-above-3-1.3009741
  8. ^ http://www.theglobeandmail.com/report-on-business/international-business/latin-american-business/dollarama-tests-latin-america-market/article8246741/
  9. ^ http://business.financialpost.com/news/retail-marketing/dollarama-tests-market-in-latin-america-with-sourcing-deal

External links

  • website
  • CNW: Dollarama, press releases
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