No. of Recommendations: 6
Further to Dollarama,
I just bought a coffee cup in the local store. They really do have a pretty nice setup.
First of all, tidy as hell, today at least - I felt underdressed, in my cycling shorts and socked feet (had to take off my cleated shoes). They have prices that are mostly $1, $1.50, $2, $2.50 (my cup), and some $5 items, each with their own sticker with its bar code.
All the shelves looked pretty well stocked, back to school being the current theme, but soon it will be Halloween.
There were about 30 people in the store, 6 or 7 aisles. Very little food, but things like cookies and candies.
Check-out was really quick, and they have removed the usual cash register, you really have to scan everything yourself, but compared to grocery stores, it really is easy, since everything has a bar-code, there's no weighing, and no hunting for the code for fresh fruit and vegetables. There was a helpful woman supervising the 5-6 self-checkout stalls (and I suppose keeping an eye out for shrink.)
I hadn't been for a while, but there's definitely a treasure-hunt aspect - I can see why people would go there, even if you can probably get things more cheaply elsewhere.
They really are a profit machine, I can see why the P/E is 36. Sales going up quickly, $1b in net income on $6b in sales.
Gun to my head, I think I would rather pay $38b for Dollarama's $1b in earnings rather than $18b for Dollar General's $1.4b in earnings. I'll think it over tomorrow morning with a nice cup of coffee in my new peach-coloured cup with a lime-green handle.
