Dollarama : Not just a simple dollar store
Few weeks ago, Dollarama released its revenue during the second quarter of the year; it has earned more than $49.8 million dollars during this quarter, which is 32% more than the revenue last year during the same quarter. Dollarama is a Montreal based company which started out selling products at $1.00 each but has now incorporated products that are worth $3.00. The company started initiating these products during August 2012; surprisingly, the addition of these products did not decrease the sales of the company. As an employee of this company, I would normally expect that as the prices of products rises at a dollar store, the demand for purchasing goods at a dollar store would decease as consumers expect products to be around $1.00. Moreover, the increase in profit is also increasing the price of stocks for Dollarama. It started out in October 2009 with the price of shares at $20 but has not risen to $70 per share.
In my opinion, Dollarama has shown that even as a dollar store, their revenue can be equally as high as other retail stores. As both an employee and a regular customer of Dollarama, I truly believe that Dollarama has made a statement to their competitors that a low budget company can earn more money than a super store such as Walmart or Loblaws. As a potential investor, it will be a good investment to buy shares of Dollarama as it will continue to rise through the years as it did the past few years.
Sources:
http://www.vancouversun.com/business/Dollarama+profit+jumps+sales+rise/7230245/story.html