Dollarama

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Dollarama Inc.
Type Public
Traded as TSXDOL
Industry Retail
Founded 1992
Headquarters Montreal, Quebec, Canada
Products Cleaning supplies, Toys, Candy, Grocery, Gifts, Healthcare products, Kitchenware, Stationery, Party Supplies, Hardware.
Revenue Increase $1.420 billion CAD (2009)[1]
Net income Increase $116.8 million CAD
Website www.dollarama.com
A standalone Dollarama store in Toronto's Parkdale neighbourhood.

Dollarama is a chain of over 800 dollar stores across Canada. The company is headquartered in Montreal and, since 2009, is Canada's largest retailer of items for three dollars or less.[2] The first Dollarama store was created at the shopping centre "Les promenades du St-Laurent" in Matane. Dollarama now has stores in every province of Canada, with Ontario having 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, which closed after a series of dubious financial transactions involving a new owner of the parent operation. [4]

The majority of items are priced at $1.00 or less[5] although in early 2009 Dollarama also 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 $1.25, $1.50, and $2.00 price level increase allowed the store to acquire products from a greater variety of sources, including closeout sales.[6]

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 they joined other retail chains in rolling out their 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 a 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]

Dollarama mainly sells soft drink products from Pepsico and Cott. Some Dollarama stores have more than 20,000 square feet of space,[citation needed] particularly in Montreal's Pierrefonds-Roxboro borough on Des Sources Blvd. at Harwood Blvd. in Vaudreuil-Dorion.

See also[edit]

References[edit]

  1. ^ "Fourth Quarter Earnings Release". 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. 

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