In the past year, Dollarama has reached a new record of $442-million, as stated in Luna Tsoi blog. Its revenue has increased 13.8%. Dollarama has transformed from the typical dollar store and has increased its revenue by offering many products, at different prices and not always just for one dollar. As people budget their money efficiently, dollar stores offer a cheaper alternative. For newer customers, having a slightly higher price also may give the illusion that the quality is a little better than if it was for only a dollar. Additionally, the higher prices “bring a higher net profit” as Luna Tsoi mentions. Only some of the products will increase to three dollars, but the true idea of a dollar store will remain, keeping most products at one dollar. Although the company’s recent success brought in increased revenue, some investors are having concerned that the core value and strength of the dollar store will decrease. (http://www.cbc.ca/news/business/story/2012/06/13/dollarama-price-hike.html) If Dollarama stays with the target of a dollar store and doesn’t greatly increase their prices, they will maintain their success.
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