Sandra Ware
The Evolving Location Strategy of Dollarama: A GIS Assisted Analysis ©2017
Understanding the location strategy of a company is essential in retail geography. This study analyzes the evolving location strategy of the Canadian retailer Dollarama over a fifteen-year period in the Toronto CMA, from 2001 to 2016. Applying a demographic, facility location, and competitor analysis allows for this study to infer the location strategy of the company and how it has matured. The findings suggest that the location strategy for the central city, suburban, and exurban zones differs throughout the years. As the negative perception of dollar stores has continued to diminish and with the recent Canadian economy struggles, the demographic composition of Dollarama store trade areas has included a wider range of consumers. As the company has become stronger, the Dollarama stores have been able to distance themselves from competitors, while opening smaller stores in the central city and suburbs,and larger stores in the exurban zone.
Keywords: location analysis, GIS, demographic, location strategy, Dollarama