The “Yiwu Small Goods” stores all over Canada turned out to be listed companies, leaving Internet users worried about the name of the new store

2022-09-15 0 By

Dollarama, a popular Canadian dollar chain, plans to sell $5 items, CBC reported.Dollarama, a Canadian-listed company, announced its fourth-quarter earnings on Wednesday.Despite the impact of COVID-19, sales in the fourth quarter of last year were C $1.22 billion, up from C $1.1 billion in the same period a year earlier.Net profit was 220 million yuan, up from 173 million yuan a year earlier.The strong financial performance gave Dollarama confidence to raise its dividend by 10 percent and will pay 5.53 cents a share, up from 5.03 cents.Dollarama also revealed in its earnings statement that it will soon start selling items for $5 in response to inflationary pressures.Dollarama is headquartered in Montreal and has 1,421 stores in almost every city in Canada. Every family can live without Dollarama.1 yuan level store to upgrade to 5 yuan store, level store no longer affordable, in The Canadian people caused a strong response.It’s worth explaining Dollarama’s commodity pricing model first.Instead of the commodity pricing model that most of us are used to, where we calculate the cost and then add the profit, Dollarama anchors the selling price of the item at $1 and then customizes the item based on that selling price to see what fits into the frame.As a result, Dollarama sells mostly seasonal items, or “Yiwu gadgets” that don’t require high quality.For example, Easter decorations, Halloween decorations, Christmas decorations, garden utensils, kitchen gadgets, detergents, cleaning utensils, toys, etc.In recent years, there are more and more food products, such as canned food, small packages of flour, chocolate, candy, juice, biscuits and snacks.Dollarama did initially sell only 1 yuan items, but since 2009, it has changed, adding 1.25 yuan, 1.50 yuan and 2 yuan items. The most expensive item is now 4 yuan.As a result, Dollarama’s range of goods is expanding, even to clothing and small appliances.”The question on the minds of dollar store executives is, if you put a ceiling on your maximum price, how do you continue to grow?” said Doug Stephens, founder of a Canadian retail consulting firm.Stephens said Dollarama’s move is a response to consumers increasingly looking for cheaper products, and there are still not many merchants that can compete with Dollarama on price.The price increase is to provide high-quality goods. From a practical point of view, after raising the price ceiling of the most expensive goods, the prices of the goods priced at 1 yuan or 1.25 yuan before will be raised under the cover of the high price goods. Now I’m afraid you can’t find the goods priced at 1 yuan in Dollarama.To mask the price hike, the company’s pr pitch is quite artistic, Dollarama says. “This will allow the company to maintain and enhance its broad product portfolio and compelling value.”Raising prices to provide quality goods is a fair statement.A CBC reporter commented that Dollarama is not just a price store for low-income Canadians, but a grocery store for groceries.Calgary resident Amber Cannon has celiac disease and lives on disability benefits.She says she relies on Dollarama for many of her everyday items, including all the gluten-free foods available.As prices continue to rise at price stores and elsewhere, Cannon says she worries about people who are in a similar or worse financial position to her.”I’m worried that more and more people will go hungry,” she said.She also said she had to give up dinner to make ends meet.Meaghon Reid, executive director of the anti-poverty group Calgary’s Vibrant Communities, says his organization estimates that at least one in 10 Calgarians live in poverty.For them, even a price increase of 1 yuan can have a devastating effect.”For someone living in poverty, it can mean the difference between a late meal, a month’s rent, even getting a ride to school,” she said.The CBC reporter also believes that the expanding product range of dollar stores reflects the income and wealth polarization that is forcing more Canadians to rely on dollar stores to meet their consumer needs.As the price gap between Dollarama’s products and the “Dollar+Rama” in the store’s name grew, some netizens urged Dollarama to change its name to better reflect its market positioning.The easiest way to do this is to add an S after Dollar to Dollarsrama.One user came up with a new tagline for Dollarama: “Dollarama, every day your hard earned money buys less and less cheap crap!”Others suggested Dollarama simply change it to “Fivebuckrama” or “$3 Rammma.””One day, they will sell burgers and ‘steaks’ in the frozen section, just like dollar stores in the United States,” said a netizen from Quebec.May this day never come!