Bayview Ave. Dollarama is always busy
Canadians seem fascinated with the retail phenomenon known as Dollarama. It is a great success story and despite much poo-pooing in 2012 as it was being installed on South Bayview the local store is always busy. When Dollarama was founded 23 years ago the promise was to sell everything for a dollar. Since then the forces of inflation have caused Dollarama to sell some items for $2. Now CEO Larry Rossy warns that sooner or later many things will be priced at $3. “We’ll hold on as long as we can, but you’re going to see some inflation I would say in Canada, unavoidably,” Mr. Rossy said Wednesday in a conference call to discuss strong fourth-quarter results. The discount retailer said it has absorbed some of the currency headwinds through lower margins, but has been forced to raise prices, for example, by adding 25 cents to some $1 items. “I think at $1 we’re struggling to get good value for the client today,” he said. Dollarama believes Canada can support about 1,400 stores, compared with the 1,200 maximum in its prior forecasts. Dollarama now has 955 stores following the addition of 81 locations last year including 27 in the fourth quarter. Dollarama said it is feeling no pressure on sales in Alberta or elsewhere because of energy prices.
