Dollarama was founded by a third-generation retailer andCanadian entrepreneur, Larry Rossy. It all started with one store,in Matane, Quebec, in 1992, and quickly grew over the next twodecades to become a household name and shopping destination forCanadians from coast to coast.

Dollarama today is a recognized Canadian value retailer withwell over 1,300 locations, led by Neil Rossy, fourth-generationretailer and member of Dollarama’s founding management team.

Dollarama aims to provide customers with a consistent shoppingexperience and compelling value, offering a broad assortment ofgeneral merchandise, consumables, and seasonal items.

All stores are corporately-owned and operated, and areconveniently located in metropolitan areas, mid-sized cities, andsmall towns. Products are available in individual or multiple unitsat low, fixed price points.

Can Dollarama sustain this advantage long term with the threatof online retailers entering this market? Explain by answering thefollowing questions.

If Canadian discount department store Giant Tiger wanted tocompete directly with Dollarama, explain in detail the two (2) mostrelevant changes their leadership team would have to make to enablea cost advantage strategy.

(4 marks)

Imagine a fully online, direct competitor to Dollarama called“DollarLeaf” which opened up to service all of Canada. Without thefixed cost associated with a bricks-and-mortar model, it’s obviousthat they have much lower input (overhead costs), resulting inlower prices in the market.

Neil Rossy, the CEO of Dollarama just got fired because of thestore’s declining performance and you have been hired as the newCEO! What would you do to turn this business around and competewith Dollarleaf while creating superior value forcustomers?

(4 marks)