Cristine Li

Canda’s fastest-growing retailer, Dollar Store, is “forcing mainstream merchants”, such as Walmart and Canadian Tire to promote their own dollar-merchandise sales.

Dollar Store succeeds because it is specialist in dollar merchandise business and it can “respond quickly to customer demand with low-cost procurement”. It borden its’ offerings and has created a great brand image to the shoppers that it is the most specialized dollar items seller, Dollar Store use this strength to compete with its’ rivals. Also, Dollar Store does not only target the low-income people, but also the middle class shoppers.

Walmart and Canadian Tire are selling dollar items as well to “recapture shppers”. However, compare to Dollar Store, those people who want to buy dollar items, will not change their favour. It is more like a operational effectiveness than strategy that they are copying what their competitor doing. But one of Walmart and Canadian Tire’s advantages may be that they sell dollar merchandise as well as regular products, so that the consumers come to their store for the $1 item and may purchase the more expensive ones as well. Unfortunately, the competitors’ changing strategies give Dollar Store very little impact that it still have remarkable growth.

Read the aritical here: Aritical 1, Aritical 2.