The concept of a dollar store is very simple: customers come in expecting to find inexpensive items. Dollarama Inc., Canada’s own ubiquitous brand, has capitalized on this price-point retail model and has performed exceptionally well over the last 22 years it has been in business. “We treat it really well, that $1 item. I do not think anybody else in the world takes it as seriously as we do,” explains CEO, Larry Rossy (Cowan, 2011). In comparison with most value-retail stores, Dollarama’s strategy is relatively simple: keep clean and brightly-lit stores with a consistent array of inventory (Cowan, 2011). However, its success is not only attributable to the convenience and ambiance offered by its stores, but also their “ability to capitalize on seasonal demand is [also] widely admired” (Cowan, 2011). Indeed, Dollarama has had the time to acquire the experience in optimizing its stores’ layout for effective leverage of seasonal products. All in all, most would say that Dollarama has done really well in its industry and climbed their way to being the dominant giant. Even so, retail analyst John Williams speculates that this dollar store has reached its mature phase of growth in the industry (Cowan, 2011). With even more new stores on the way, will Dollarama Inc.’s consistent growth be sustainable?
Description
The very first Dollarama was opened in 1992 in the city of Matane, Quebec. Founder and current CEO of Dollarama Inc., Lawrence (Larry) Rossy, at 70 years old, is a third generation retailer (Dollorama Inc., n.d.). Under the original name of Dollorama Capital Corporation, this company was incorporated in 2004 and went public in 2006. After merging with one of its holding company, it renamed itself as Dollarama Inc. in 2009 (Dollarama Inc., 2013, p. 6). Its current head office is in Montreal (Dollarama Inc., 2013, p. 6).
Dollarama is the Canadian leader in value