Saturday, February 13, 2010

Dollarama beats Canadian Tire

For a long time Canadian Tire could claim that it was the retailer with the largest number of stores. Not any more. Dollarama  now has 594 stores.

Dollarama has about 30% of its sales from seasonal items - Christmas, Valentines, Easter etc.

For the past many years, it managed to stick with its $1 price point but now has raised that to $2. It appears to be a good move with ~30% of transactions now coming from higher price points. But at some point, if you push the price points too hard, friends at Bentonville will start taking note of you.

Valentine's Day- the cost of Love

New research indicates Americans spend about $14B for gifts this Valentine's Day. This includes not just gifts for significant others but also friends, co-workers and even pets !