When you think about dollar stores, you think items that’ll only cost you a buck or two.
But over the years, shoppers have seen higher prices; prices that retailers across most categories can attribute to factors like a rise in minimum wage and overall purchasing costs.
Dollarama, in particular, has seen prices for items rise up to $3 or $4, something not all customers have been happy about.
You know things are getting super expensive when dollarama has $4 products pic.twitter.com/K8gAfU3vsd
— Sacopla, Joshua (@JSacopla) August 27, 2016
In 2016, the Montreal-based chain made a move towards better quality products. Using toothpicks as an example, Dollarama’s Chief Executive Officer Larry Rossy said, “it’s not so much that we can offer 500 toothpicks, but it’s more if we offer 200 very good toothpicks that the customer will be happy with, I think that’s what counts at the end. It’s a culture that we’re trying to instill in everyone. Again, it’s not quantity but quality that counts.”
But now the company is singing a different tune.
Earlier this year, Dollarama announced that it would increase its offering of lower priced items.
While they still plan to sell higher quality items that are in the $3 to $4 range, they’ll be increasing the amount of lower priced items that it has on its roster.
According to a report by Bloomberg, the company is making to move in order to generate more in-store traffic.
“I think, you know, quite honestly, that we did lose sight of it, on making sure we had all the traffic drivers needed to balance our higher price points,” Dollarama CEO Neil Rossy said in a conference call. “We have to refocus on traffic generating and unit sales, because at the end of the day, in bricks and mortar, that’s the bread and butter.”
Dollarama hopes that the move will not only benefit the company’s bottom line, but that it will make customers happy, too.
In addition to more selection of lower priced offerings, Dollarama officially launched online shopping at the beginning of the year. The online store has approximately a thousand items for sale, and while the items are sold in bulk, Rossy hopes that it will fill a certain type of customer’s needs.
“Small businesses will find it more interesting to buy their stationary there, or what have you, and people having parties or conferences or whatever it is, will use it because it’s a practical way to get the best price.”
By the end of 2019, Dollarama says it will add 60 to 70 new stores, with a target of 1,700 stores in total by the end of 2027.
Featured image: Shop Square One
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