As inflation gives many consumers headaches on the eve of back-to-school, finding $1 items in the aisles of Dollarama is getting harder and harder, La Presse found.
Bags of candy, chocolate bars, markers, pencil sharpeners and instant ramen noodles are among the thirty or so products that you can still buy with a loonie, according to the review we made while walking the aisles of a sign in Montreal.
Asked about the proportion of $1 items normally offered in stores, company spokeswoman Lyla Radmanovich replied by email that this data was not “available”. All prices combined, the stores have approximately 4,600 products available year-round, in addition to seasonal items.
During our visit to Dollarama, some aisles did not contain any $1 items. With prices constantly rising, such items are visibly becoming a rare commodity. A simple plastic cup or gift bag is now displayed at $1.25 or $1.50.
“We still sell a significant portion of our items for $1 or less,” Radmanovich said. Our multiple pricing strategy aims to maintain attractive relative value and enhance our overall offering within existing product categories. As for the new fixed prices, items sold up to $5 were only introduced last summer, and gradually. At this time, we do not plan to introduce new fixed prices. »
“If Dollarama had stuck with only $1 products, there would be very little in its stores or very low-quality products,” said Maryse Côté-Hamel, assistant professor of consumer science at Laval University. [Dollarama executives] say that by raising their prices, they can have new things in store. »
In this context, will the company inevitably stop selling $1 merchandise? “I would tend to say yes,” replies Ms. Côté-Hamel. Everything continues to increase. Logically, one day, there are certain products that they currently offer that they will no longer be able to offer because it will no longer be profitable for them.
“[I think] they’re going to keep raising their prices to $6, then one day to $7… In five or ten years, for $1, you won’t have anything in any business at all.” »
Despite everything, the professor believes that Dollarama remains “an affordable option”. “Dollarama has a pricing strategy that is still interesting, in that they don’t really discount. They say it openly. For example, she illustrates, for back to school, they say, “We may not be the best place for discounts. Except that for the rest of the year, our items will be cheaper than elsewhere.” »
With the start of the school year just days away, a pack of five ultra-fine Sharpie markers is $5 at yellow and green sign stores. Walmart sells the same crayons for $7.68 for a pack that contains 14.
During the presentation of the results for the first quarter ended April 30, Neil Rossy, President and CEO of Dollarama, had already announced his colors about the school supplies sold more expensive in his stores than in some of his competitors. “For 11.5 months, we’re more affordable,” he said during a conference call with analysts. We don’t react to [others’] promotional activities. If they decide to have horrible margins on a loss leader, that is their business decision. We have an everyday low price strategy. »
Founded: 1992
Turnover (2022): 5 billion
Number of employees: 25,840
Number of stores: 507
Headquarters: Mount Royal
Introduction of $2.50 and $3 items: 2012
Introduction of $3.50 and $4 items: 2016
Arrival of $5 items: 2022
