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Dollarama
+4.85%
Retail / Retail
At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web1. Increasing Competition: Dollarama Inc. faces increasing competition from other large discount retailers. Recently, major players such as Walmart and Target have increased their presence in Canada, and their larger size and financial resources allow them to offer products at significantly lower prices than Dollarama.
2. Dependence on Limited Product Sources: The company has limited access to product sources, as it relies heavily on importation from markets such as China and Thailand. Any changes to tariffs, currency exchange rates or labor costs in these markets could have a negative impact on Dollarama’s gross margins.
3. Vulnerability to Economic Cycles: The discount retail industry is highly dependent on consumer spending, and Dollarama’s sales could suffer significantly during an economic recession.
4. Low Brand Recognition: Despite its efforts to increase its presence, Dollarama is still relatively unknown outside of Canada. This leaves the company vulnerable to new entrants into the market that could quickly gain a large share of business with strong marketing.
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