It was buried at the end of a
long press release.
It was spun to be a positive thing.
And they say it will allow them to offer you better merchandise once they're done.
But it still seems like the kind of change - or make that spare change - that offers a key insight into the current economy. Dollarama, Canada's largest dollar store chain, has confirmed that as of early next year its 'everything for a loonie' policy will be gone forever.
The company, which has more than 536 stores in Canada and what seems like hundreds of them on nearly every GTA corner, issued a statement on Wednesday outlining a rosy profit picture in the second quarter, noting sales increased more than $31 million at the end of August, even with store traffic down slightly.
But it was the last part of their announcement that really indicated a change in the chain, which began in 1992. Starting February 1st, Dollarama will raise the prices on some of its items to $1.25, $1.50 and $2, although most will remain at the loonie level.
The company insists the new price point will allow it to stock up on closeout goods and items that it could never afford before because of its rigid dollar-only policy. New toys, glassware and plastic products will start popping up in the stores for the added few coins.
Its CEO tried to paint this as a positive change. "This new selection will leverage Dollarama's distinct merchandising strength - delivering tremendous value to our customers across a broad and exciting array of products, always at the lowest possible price points," proclaimed Larry Rossy, whose family founded the chain.
What does it mean for bargain hunters? You'll still be able to buy cheaper light bulbs and batteries at your local outlet. But a published report indicates that the company is privately feeling nervous about the big alteration and wondering how long time customers will react.
Price stickers will be appearing on items for the first time and the famous logo will be altered to read "$1-plus." Some suggest this is just the start of a huge trend that will see the cost of items continue to escalate.
Dollarama is famous for offering fairly cheap goods - most from China, some from overstocked closeouts - in its stores and the outlets always seem to be crowded and busy.
There's no way of knowing if this will change that status much or affect future profits, but one thing is certain: you don't have to be an economics professor or a student of the stock market to know what's happening to the economy. Just look at your local dollar store. It just may be telling you everything you need to know.
Photo courtesy Wikipedia