Dollarama expanding business in Canadian market is unstoppable

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Dollarama has more than a 60% market share in Canada, expects to open its 1,000th store this year. Now that Dollarama is able to compete with its rivals Metro and Walmart with its comparative advantage–cheaper price.Customers appreciate the compelling value in our multiple-price-point offering, which is a unique strategy that differentiates Dollarama.The company targeted middle-class group where count for 60 percent in Canadian society,making its blockbuster retail performance in the first quarter of fiscal 2013. Dollarama is the epitome of a no-frills operation, but it runs far more efficiently at the retail level than a number of top Canadian retailers. Its advantage is that is not based on a big box model, so it can open smaller stores in more areas around town, where provides convenience for shoppers. 130306_rf1k9_dollarama-deux_sn635

While Dollarama once sold only trinkets, they’ve been expanding into other categories in recent years, offering more toys, party supplies, and dry good food products. Other than that, Dollarama has implemented standardized recall procedures which comply with requirements issued by Health Canada and the Canadian Food Inspection Agency, promoting good company business ethics for Dollarama in community.

Overall, Dollarama is suitable expanding in Canadian market as it has the reasonable business strategies of developing in major metro market, where the bigger company like Walmart has trouble to fit into that.

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Works Cited

 

“How Dollarama Turns Pocket Change into Billions.” The Globe and Mail. Global Business, 06 Sept. 2012. Web. 04 Oct. 2015. <http://www.theglobeandmail.com/report-on-business/rob-magazine/how-dollarama-turns-pocket-change-into-billions/article4097813/>.

Ratner, Jonathan. “Picking the Winners and Losers in the Canadian Consumer Space.” Financial Post Picking the Winners and Losers in the Canadian Consumerspace Comments. Investing, 04 June 2015. Web. 04 Oct. 2015. <http://business.financialpost.com/investing/trading-desk/picking-the-winners-and-losers-in-the-canadian-consumer-space>.

Shaw, Hollie. “Conquering Canada, One Dollar at a Time.” Financial Post Conquering Canada One Dollar at Atime Comments. Investing, 06 July 2012. Web. 04 Oct. 2015. <http://business.financialpost.com/investing/conquering-canada-one-dollar-at-a-time>.

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