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  "documentTitle": "Dollarama Inc. (DOL)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2018-10-31 00:00:00",
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  "pageNumber": 14,
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  "notes": "Includes a line chart showing Big Lots comp store sales from 2005-2014, annotated with the introduction and abandonment of the 'Raise the Ring' strategy.",
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      "kind": "callout",
      "text": "Big Lots alienated shoppers who were seeking cut-price, name-brand goods after venturing into other areas, like selling frozen food: \"Our customer doesn't come to us expecting a Nordstrom's level of in-store shopping experience...\"",
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      "kind": "callout",
      "text": "If price-conscious customers aren't interested in shopping at Dollarama, we wonder who is...",
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      "kind": "callout",
      "text": "Big Lots alienated shoppers who were seeking cut-price, name-brand goods after venturing into other areas, like selling frozen food.",
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      "text": "\"Raise the Ring\"-- Big Lots Comp Store Sales",
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      "text": "Calls with industry experts indicate that Dollarama is losing more price-conscious customers to Dollar Tree and other discount retailers following its efforts to raise prices, and that this is a major driver behind recent per-store traffic declines.",
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      "text": "Raising price points to prop up SSS growth against falling store traffic is a major risk for discount retailers, as their entire value proposition comes from their low prices. Higher prices may turn off customers and create difficult comps in the event that price increases must be paused or reversed due to customer pushback.",
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      "text": "In 2006, for example, Big Lots – a U.S. discount retailer – introduced higher-ticket brand-name items in place of comparable budget goods in an effort to get customers to spend more per visit. This strategy reinvigorated same-store sales growth for a time, but ultimately failed. Subsequent difficult comps resulted in negative SSS growth after management abandoned its so-called “Raise the Ring” strategy.",
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      "kind": "quote",
      "text": "\"Our customer doesn't come to us expecting a Nordstrom's level of in-store shopping experience. They want value, treasures, merchandise on the floor and clean restrooms, and we need to meet those expectations,\" [CEO Steve] Fishman said in 2005. ... \"We're an enigma,\" he said at an investor conference this month. \"It's been a real challenge for the marketplace.\" — CEO Steve Fishman",
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      "kind": "title",
      "text": "Increasing Average Unit Revenues Is A Very Risky Strategy That Has Failed Before",
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