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DOLLARAMA (Hazard (Risk of reliance on key personnel and the indirect…
DOLLARAMA
Hazard
Risk of reliance on key personnel and the indirect effect of business interruption should a board member or executive be incapacitated
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Potential issues stemming from construction of new warehouse, i.e. wasn't constructed to code
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Damage to merchandise within warehouses and distribution centres from natural hazards or catastrophe.
Strategic
Amendment to normal course issuer bid, changed the 2015 - 2016 NCIB to allow max number of common shares to go from 6.5 million to aprox. 11.8 million
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Risk of choosing an unsuitable location for a new store or losing a potential profitable location to a competitor
Brand damage due to issues with quality, reliability or ethics of products and suppliers
Financial
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Potential increase in equity from amendment to allow max number of common shares to go from 6.5 million to approximately 11.8 million
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Inflation, large purchases made in China as well as other Asian markets. Large fluctuation home ad abroad could play roles in financial outcomes
Risk of high level of indebtedness because as of the end of the 2016 fiscal quarter Dollarama long term debt amounted to about $1.2 billion
Operational
Supply chain disruptions, because most products are shipped and imported a large number of factors could hold up sections of the supply chain that bring in business merchandise
Errors in merchandise selection and replenishment, identifying the volume and consumer needs in a timely manner
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Potential issues surrounding appointment of new president and CEO, Neil Rossy (as of May 01 2016)
Unprepared for peak seasonal sales, since the majority of sales come during the fourth quarter, as well as in times of major holidays (Christmas, St. Patrick's day, Easter etc.)