With the loonie in decline, Dollarama may not be a dollar store for much longer. In a recent conference call, Larry Rossy, Dollarama’s CEO, said the weak Canadian dollar may force the Montreal-based company to raise prices. As of right now, Dollarama’s prices cap at $3 but they may be up to $4 by late next year.
“In general, we like to maintain our prices as long as we can, but this is really an exceptional time where the Canadian dollar has gone so poorly against the U.S. dollar and everything is bought in U.S. dollars. So to absorb 25 to 35 per cent (in currency swing) is almost impossible,” Rossy explained. He also told analysts he hopes to get more ‘clarity’ about the need for higher prices during a trip to China in October.
To keep prices at a minimum, the company may be forced to reduce the sizing of products. So what does this mean for us, the consumer? We will most likely pay the same prices, for less product, which is a huge bummer. Fortunately, Rossy said food would remain priced at a maximum of $2.
Are you sad that Dollarama may be raising their prices?