Expect More Dollaramas
According to the Financial Post, with Dollarama taking control of the “bargain basement retail segment”, it could quite possibly double it’s store count.
With new stores immediately adding to earnings and generating new cash flow, in addition to being at the top of the “bargain basement retail segment”, they see no competition in expansion so they plan to increase the density of Dollaramas in other provinces like they have done with Quebec.
They also plan to incorporate “not a real dollar store” pricing by selling things for more than a dollar with three additional pricing scales, $1.25, $1.50 and $2.00. That’s probably the only thing that could hurt them since many shoppers bash dollar stores when merchandise is priced more than a dollar and it’s likely people would be turned off by the new price points. There’s already a dollar store with items costing $2.00, it’s called Buck Or Two.
Anyway, store chains expand when they do well and it’s not surprising with the current economy that people are trying to save money so they shop at dollar stores. There are plenty of good buys there if you know what to look for. Just remember to avoid things like vitamins, batteries and anything electrical as they are well known to have issues.
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