After opening 26 stores in just three months, high-flying Dollarama has announced it will begin accepting credit cards in 2018. Sales are booming at outlets like the Mt. Pleasant Rd. Dollarama and the impact has sent the firm’s shares to a high on the TSX this week. It increased its price ceiling to $4 last year. Dollarama also revised its long-term target to 1,700 stores from 1,400 stores, over the next 8 to 10 years across Canada.
The decision to accept credit cards may seem inevitable as Dollarama grew. Since it’s beginning, it has refused to take Visa and MasterCard, concluding that the fees would offset any increased sales. As forms of payment increase however, both consumers and retailers are relying less on cash. Credit card companies have tried hard to blur the difference between debit and credit purchases. Nonetheless, the prize of landing Dollarama must have generated some excellent offers from Visa and MC. It will be interesting to see if Amex is allowed in.