SWOT For Dollarama

Strengths:
• Strong Financial Performance:
Dollarama has achieved impressive financial results in 2023, with revenues of $5,052,741,000
and net income of $801,863,000.
• The company's earnings per share have increased to $2.77, indicating healthy
profitability.
• Expansion and Growth:
• Dollarama has continued to expand its retail network, with 1,486 locations in 2023,
indicating successful growth efforts.
• Sales per location have increased by 12%, demonstrating the company's ability to drive
sales in existing stores.
• Cost Control:
• The company maintains a gross margin of 43.5%, showcasing effective cost control
measures.
• Dollarama follows a cost-minimization strategy, which has contributed to its strong
financial performance.
• Convenient Store Locations:
• About 85% of Canadian households live within 10 km of a Dollarama store, ensuring
convenient access for customers.
• Environmental Sustainability:
• Dollarama has implemented environmentally friendly practices, reducing GHG
emissions, landfill airspace, and water consumption.

• The company's commitment to waste reduction and reuse aligns with sustainability goals.
Weaknesses:
• Customer Satisfaction and Product Recalls:
• Customer satisfaction ratings are below acceptable standards, with a score of 3.24 out of
5.
• Dollarama has experienced a high number of product recalls (108,616), which is higher
than acceptable levels.
• Employee Satisfaction and Diversity:
• Employee satisfaction ratings are below acceptable standards, with a score of 3.35 out of
5.
• While Dollarama has a diverse workforce, the representation of visible minorities in
management and the board of directors is low (10%).
• Social Media Presence:
• Dollarama is not currently utilizing social media platforms for marketing and
engagement, which could be a missed opportunity for brand promotion.
Opportunities:
• E-commerce Expansion:
• With the growing trend of online shopping, Dollarama has the opportunity to expand its
e-commerce presence.
• Online sales provide access to a broader customer base and convenience for shoppers.
• Sustainable Products:
• There is an increasing demand for eco-friendly and sustainable products. Dollarama can
capitalize on this by offering a wider range of such products.
• Investing in environmentally responsible practices and product lines can attract
environmentally conscious consumers.
• Strategic Partnerships:
• Dollarama can explore partnerships with local or global suppliers to enhance its product
variety and quality.
• Collaborations with popular brands can also attract new customers and drive sales.
• International Expansion:
• Expanding into international markets beyond Canada can be an opportunity for growth
and diversification.
• The success of Dollarcity in Latin American markets suggests potential for further
international expansion.
• Private Label Expansion:
• Dollarama can continue to expand its private label products, which can offer higher
margins and exclusivity.
• Developing unique and quality private label brands can differentiate Dollarama from
competitors.
Threats:
• Competition from Large Retailers:
• Large retailers like Walmart, with their one-stop shopping experience and competitive
pricing, pose a significant threat.

• They have substantial resources and can potentially outcompete Dollarama on various
fronts.
• Online Retail Competition:
• The continued growth of online retail giants like Amazon presents a threat to brick-and-
mortar retailers like Dollarama.
• Convenience and extensive product offerings from online competitors can divert
customers away from physical stores.
• Changing Consumer Preferences:
• Shifts in consumer preferences and buying behaviors can impact Dollarama's sales.
• If consumers prioritize quality over price or opt for more sustainable options, Dollarama
may face challenges.
• Supply Chain Disruptions:
• Dollarama heavily relies on suppliers, including those from China, which can be
vulnerable to supply chain disruptions.
• Any disruptions, such as trade tensions or global crises, can affect product availability
and prices.
• Regulatory Changes:
• Changes in regulations related to labor, environmental standards, or pricing can affect
Dollarama's operations and costs.
• Adapting to evolving regulations may pose challenges.
• Threat Impact (L, M, H) Probability (L, M, H)

Competition from Large H M
Retailers
Online Retail Competition H H
Changing Consumer M M
Preferences
Supply Chain Disruptions H M
Regulatory Changes M M

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Strengths:

• Strong Financial Performance:

and net income of $801,863,000.

• Expansion and Growth:

indicating successful growth efforts.

sales in existing stores.

• Dollarama follows a cost-minimization strategy, which has contributed to its strong

• Convenient Store Locations:

• About 85% of Canadian households live within 10 km of a Dollarama store, ensuring

convenient access for customers.

• Dollarama has implemented environmentally friendly practices, reducing GHG

emissions, landfill airspace, and water consumption.

• Customer Satisfaction and Product Recalls:

than acceptable levels.

• Employee Satisfaction and Diversity:

• While Dollarama has a diverse workforce, the representation of visible minorities in

management and the board of directors is low (10%).

• Social Media Presence:

engagement, which could be a missed opportunity for brand promotion.

capitalize on this by offering a wider range of such products.

• Investing in environmentally responsible practices and product lines can attract

environmentally conscious consumers.

variety and quality.

• Private Label Expansion:

margins and exclusivity.

• Competition from Large Retailers:

pricing, pose a significant threat.

• Online Retail Competition:

mortar retailers like Dollarama.

customers away from physical stores.

• Changing Consumer Preferences:

may face challenges.

• Supply Chain Disruptions:

vulnerable to supply chain disruptions.

• Changes in regulations related to labor, environmental standards, or pricing can affect

Dollarama's operations and costs.

• Adapting to evolving regulations may pose challenges.

• Threat Impact (L, M, H) Probability (L, M, H)

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