(TSX:DOL) peaked at more than $90 each, I started to get bearish on the company.
There was still plenty to get excited about. Canada’s slowing economy
is still a good thing for the company. Consumers tend to shop at
lower-priced chains when times get rough, seeking the same goods at a
better price. What’s priced lower than the dollar store?
Other retailers are getting hammered by the low Canadian dollar.
Since Dollarama has much healthier margins than most, it’s been able to
absorb some of this increase in costs. Expanding the company’s maximum
price to $3 was a stroke of genius as well. Customers are willing to
stomach a $0.50 increase in the price of an item, even if it is a 50%
increase. In fact, most will barely notice. (more)