For many years, Dollarama has been every Canadian's go-to place to buy things for a single dollar - it’s implied in the company’s name, after all.
As of recently, the dollar store's reputation seems to be changing. The company now sells lots of items for over a dollar and people aren’t happy about it.
It’s even starting to take a toll on Dollarama’s ability to do business.
Dollarama has warned its investors that they shouldn’t get their hopes up to see massive profits at this time of year.
The company is only expecting sales to rise only 2.5 to 3.5 percent at this time. That’s a massive drop from the 4 to 5 percent that its investors are used to.
Dollarama’s stock has also dropped by 14 percent, a huge decrease for a company which recently had to recall more than 500,000 toys because they were found to have dangerous chemicals in them.
Canadians are pointing out that, in their experience, Dollarama is no longer a dollar store. The change is forcing their once-loyal customers to shop elsewhere for cheap goods.
“The prices are gradually increasing making them less of a bargain and they are starting to compete with other chains such as Giant Tiger and Dollar Tree since they have no specials,” one Canadian says in response to a recent article about the chain's financial woes.
“As a regular shopper, I notice (price) increases of 100% or more on some household products such as plastic wrap and aluminum foil,” said another.
The company says it has been trying to minimize how many price increases it puts in place. But, Canadians clearly aren’t seeing that in their local Dollarama stores.
It seems that some Canadians have even gone as far as boycotting the discount store.
“This store sells cheap junk that only lasts a week and finally it’s getting punished for being a huge scam under the disguise of bargain deals,” wrote one person.
Dollarama may have hit a financial snag, but Canadians aren’t feeling very sympathetic towards the company.
Source: Financial Post