Dollarama Inc says the weaker Canadian dollar is forcing it to raise prices and could lead the discount retailer to increase its current price threshold from $3 to as much as $4 by late next year.
“The probability is in the third and fourth quarter of next year, we’ll have to move our price points up” CEO Larry Rossy said, “In general, we like to maintain our prices as long as we can, but this is really an exceptional time where the Canadian dollar has gone so poorly against the U.S. dollar and everything is bought in U.S. dollars. So to absorb 25 to 35 per cent (in currency swing) is almost impossible.”
However, Rossy said the new, higher-priced items would not lead to the introduction of new product categories. Food, for example, would remain priced at a maximum of $2. The company could mitigate pricing pressures by reducing product sizes.
I realized last week that the Cdn dollar is 75 cents against the US dollar, so I can understand the price hike coming along. At least everyone can stock up this month and plan to be selective later.
Well, every year I find myself shopping there less and less due to their cost increases. Often go there for kids supplies for school projects etc.
Not too surprising and I will still shop there.. still decent prices & CDN company.
Funny, when our dollar was strong they didn’t lower prices……… Just saying.
Funnier still is most of their stuff comes from China whose economy is dropping like a stone. so the costs should be lower.
I shop less and less as inflation goes up and up
I can see some items go up, but not all. They buy a good part of their stock from CANADA from stores here that have failed.
I expect they will raise the price for most of their stuff, and it will FOREVER be that higher price even when the dollar comes back.