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Dollarama

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Dollarama Inc.
Company typePublic
TSX: DOL
S&P/TSX 60 component
IndustryRetail
Founded1992; 32 years ago (1992)
FounderLarry Rossy
HeadquartersMount Royal, Quebec
Number of locations
1,486[1] (2023)
Key people
Neil Rossy, CEO[2]
Larry Rossy
(Executive Chairman)
ProductsCleaning supplies, toys, candy, grocery, gifts, healthcare products, kitchenware, stationery, party supplies, hardware
RevenueIncrease $5.052 billion CAD (2023)[1]
Increase $1.523 billion CAD (2023)
Increase $1.191 billion CAD (2023)[1]
Number of employees
Around 24,000 (2023)
Websitewww.dollarama.com

Dollarama Inc. is a Canadian dollar store retail chain headquartered in Mount Royal, Quebec.[3] Since 2009, it has been Canada's biggest retailer of items for five dollars or less.[4] Dollarama has over 1400 stores and is active in all of Canada; Ontario has the most stores.[5]

History

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Rossy S Inc.

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The first all-dollar store was founded in Montreal in 1910 by Salim Rassy, a Lebanese immigrant, whose name became Rossy.[6][7] His son George took over the retailer in 1937 and led the company until his death in 1973 when grandson Larry Rossy assumed leadership of it when it had 20 stores.[6]

Dollarama

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The discount retailer grew to 44 stores by 1992 which until then operated under the name Rossy S Inc. (not to be confused with Rossy Michael, a similar chain founded in 1949 by another son of Salim Rassy[8]). That year, Larry Rossy opened the first Dollarama at the shopping center "Les Promenades du St-Laurent" in Matane. The Dollarama division rapidly became the primary source of revenue for the Rossy family. As such, the Rossy S chain was discontinued and all of its stores had either closed outright or been converted into Dollarama locations by the turn of the new millennium. After converting all the locations to the dollar store concept, Larry Rossy continued to open new stores eventually reaching 1,000 stores in 2015.[6] In November 2004, 80 percent of the chain was sold for $850 million US, to a private equity fund, Bain Capital, of Boston, Massachusetts.[9]

Post IPO

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Dollarama's initial public offering took place on October 9, 2009.[10] In 2013, Dollarama was planning to expand its market to Latin America, and made an eight-year agreement to share its business expertise and offer sourcing services to Dollar City, a Salvadoran chain of dollar stores in Central America and Colombia.[11]

In 2016, Dollarama established a partnership with the Marco G. R. Enterprise, resulting in the sponsorship of the first edition of the Formula Windsor Championship.[12]

In 2018, Dollarama recalled over 50,000 children's toys due to dangerous levels of phthalates.[13]

The number of stores in October 2021 was 539 in Ontario, 379 in Québec, 134 in Alberta, 111 in British Columbia, 42 in New Brunswick, 41 in Manitoba, 40 in Nova Scotia, 40 in Saskatchewan, 25 in Newfoundland and Labrador, and 5 in Prince Edward Island.[14] The company announced that it would open 700 new locations across Canada (including a few replacements for some of the Great Canadian Dollar Store locations) in the aforementioned provinces as well as their first store in the Yukon Territory.

Business practices

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A standalone Dollarama store in Toronto's Parkdale neighbourhood
Dollarama in Square One, Mississauga, ON

Many items are priced at $1.00 or less, and initially almost all items were priced as such.[9] In early 2009, Dollarama began to introduce items priced up to $2.00 (including $1.25 and $1.50 price points). Due to the positive response from consumers to the multi-price point strategy, the stores introduced items at $2.50 and $3.00 in August 2012. It again increased price points to include $3.50 and $4.00 items in August 2016. In 2022, Dollarama announced that its maximum price point would be increasing to $5.00.[15] This price level increase allowed the chain to acquire products from a greater variety of sources, including closeout sales.[16] Adjustments may eventually happen to all prices.[17] Dollarama has always had a No Return and No Exchange Policy. Once an item is bought, it cannot be returned or exchanged.

Payment in Dollarama stores was once by cash only, until Interac debit cards were added as a payment option beginning in 2008. Gift cards began to be offered in 2011. As of 2015, all Dollarama stores also support contact-less Interac Flash payments. In March 2017, Dollarama announced that credit cards would be offered as a payment option at all stores by the end of summer 2018.[18] Customers will be able to pay with Visa, Mastercard, and American Express, following a successful pilot program.[19][20]

Many Dollarama stores were opened in place of former locations of the now defunct BiWay,[citation needed] which closed after a series of dubious financial transactions involving a new owner of the parent operation.[21] Dollarama launched its online store on January 21, 2019 where it will sell many of its products in bulk.[22] Only 1000 of the roughly 4000 products offered in Dollarama stores will be sold online, namely items that are easily purchased in bulk.[23]

See also

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References

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  1. ^ a b c "DOLLARAMA REPORTS FOURTH QUARTER AND FISCAL YEAR 2023 RESULTS". Dollarama Inc. 28 Dec 2023.
  2. ^ "Officers - Dollarama".
  3. ^ TMR-based Dollarama posts strong financial report despite COVID
  4. ^ "Dollar stores in Canada- Statistics & Facts". Statista. Retrieved 12 April 2020.
  5. ^ "Dollarama History". Dollarama. Archived from the original on 29 June 2011. Retrieved 29 April 2011.
  6. ^ a b c Linde, Damon van der (30 March 2016). "Larry Rossy hands off CEO's job at Dollarama to his son Neil as retailer hikes dividend on higher earnings". Financial Post.
  7. ^ Cowan, James (April 7, 2011). "Retail: The genius of Dollarama". CanadianBusiness. Archived from the original on September 24, 2019. Retrieved June 9, 2019.
  8. ^ "About".
  9. ^ a b "Dollarama undergoes major transformation". Montreal: National Post. June 1, 2006. Archived from the original on 2006-06-16.
  10. ^ "Dollarama shares soar after IPO | CBC News".
  11. ^ "Dollarama tests Latin America market". The Globe and Mail. 5 February 2013.
  12. ^ Shaw, Hollie (5 February 2013). "Dollarama tests market in Latin America with sourcing deal". Financial Post.
  13. ^ Keith, Elizabeth. "Dollarama Just Recalled Over 50,000 Toys In Canada Over Dangerous Chemical Levels For The Second Time This Year". Narcity. Retrieved 27 December 2018.
  14. ^ "Dollarama stores Canada by province 2021". Statista. Retrieved 2021-10-02.
  15. ^ "Five-Dollarama? Discount store to increase price range to $5 or less next fiscal year". Montreal. 2022-03-30. Retrieved 2022-04-01.
  16. ^ Silcoff, Sean (18 September 2008). "Million-dollar question: Are $5 stores up next?". The Globe and Mail.
  17. ^ "Dollarama could raise prices above $3". CBC News. 25 March 2015.
  18. ^ "Dollarama to open more stores, start accepting credit cards". The Globe and Mail. 30 March 2017. Archived from the original on 30 March 2017. Retrieved 2019-10-24.
  19. ^ "Dollarama to start testing credit cards in British Columbia". Global News. 10 December 2015. Retrieved 11 April 2017.
  20. ^ Marowits, Ross (9 December 2015). "Four-Dollarama: Budget retailer raising its top prices Canada-wide". CTV News. Retrieved 11 April 2017.
  21. ^ "Stores we miss". MSN Money. Archived from the original on 16 October 2011. Retrieved 25 February 2012.
  22. ^ "Dollarama Officially Opens an Online Store". CTV news. January 21, 2019.
  23. ^ "Dollarama launches online store for bulk purchases". CBC News. January 22, 2019. Retrieved 2019-01-28.
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