Friday, September 19, 2008

Update on the 99 Cents Store

Has Canada answered the 99 Cents Question with its $5 Store?
"First, five-and-dimes gave way to dollar stores. Now, inflation pressures are threatening to make the dollar store a thing of the past, too.

Dollarama Group LP, Canada's largest dollar store operator, is set to abandon its "all at $1" pricing strategy at its 536 stores in the new year, the company said yesterday.

After Feb. 1, Dollarama will introduce three new price levels - $1.25, $1.50 and $2 - though it says the majority of items will still sell for $1.

"After 16 years at a dollar, we've found in the last few years sourcing dollar products has become a little more difficult," Dollarama chief executive officer Larry Rossy said in a rare interview. "Meanwhile, during our recent buying trips [to Asia] we were consistently offered 'wow' items at the $1.50 to $2 price point."

Read the full article: Million-dollar question: Are $5 stores up next? Sounds like the the 4.99 idea is spot on. Thanks to our bloggers Per Sjofors and Rafi Mohammed for their thoughts

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