October 2006 Top Producers
Date: November 29, 2006

Your Dollar Store with More Head Office Newsletter

Category #7 - 6001 SQ FT - 7000 SQ FT (8 Stores in Category)

#1Dalhousie Station, Calgary, AB (#246)Hanif Remtulla & Shiraz Ali

#2High Level, AB (#214) Laurie & Tess Nasson

#3Park Royal, Vancouver, BC (#147)Kelvin & Diane Lee

#4Capilano, Edmonton, AB (#226)Thorton Liu & Ying Chun Yang

#5Transcanada Centre, Calgary, AB (#253)Al Tufts & Murray Creller

Category #6 - 5001 SQ FT – 6000 SQ FT (11 Stores in Category)

#1Fort McMurray, AB (#203)Doug & Miranda Marcinowski/MGR-Judy Haynes

#2Lloydminster, AB(#227)Gary and Dianne Laverty/Kevin and Shannon Eger/MGR-Debbie Toms

#3Meadowvale, Missisauga, Ont (#505) Ron Manson-Hing

#4Tsawwassen, BC (#155)Wayne Kupillas and Willie Fisher

#5Terrace, BC (#163)Barrie & Bonnie Carter/MGR-Christine Bayton

Category #5 4201 SQ FT – 5000 SQ FT (22 Stores in Category)

#1Fort McMurray, AB (#263)Doug & Miranda Marcinowski/MGR- Judy Haynes

#2Prince Rupert, BC (#139)Harvey & Shirley Olm

#3Toronto, Ont (#514)Gulnaz Ahmed

#4Prince George, BC (#143)Barrie & Bonnie Carter/MGR Shelley Brizan, Ken Staley

#5Kamloops, BC (#110)Clarke Alger & Jodie Helm

Category #4 3401 SQ FT – 4200 SQ FT (20 Stores in Category)

#1Cornerstone,PA, SK (#313)Joyce Liebreich/MGR-Kim Moldowan

#2Meadowlark, Edmonton, AB (#245)Ken & Jacqueline Dawson/MGR-Bonnie Rector

#3Hart Centre, Prince George, BC (#148)Christine Unger

#4Rutland, Kelowna, BC(#149)Roland Krasznai & Kalem Tonn

#5Medicine Hat, AB (#216)Don & Christa Cameron

Category #3 2601 SQ FT – 3400 SQ FT (41Stores in Category)

#1Meadow Lake,Sask. (#305)Keith & Beth Gregson, Mgr – Holly Sinclair

#2Grande Prairie, AB (#233)Michael & Olive Dolihan

#3Varsity Common, Saskatoon, Sask. (#316)Ron & Judy Blais

#4St. Paul, AB (#221)Mike & Karen Trudeau & Paul & Louise Carpenter

#5Whitecourt, AB (#205)Linda & Richard Miko

Category #2 1801 SQ FT – 2600 SQ FT (37 Stores in Category)

#1Mission Park, Kelowna, BC (#101)Corporate –Melanie Bertram

#2Cochrane, AB (#225)Gordon & Carolyn Cox

#3College Park, Saskatoon, Sask. (#302)Ron & Judy Blais

#4Albion Rd.Toronto, Ont. (#520)Peter Dhillon & Ranjit Dosanjh

#5Nelson, BC (#108)Neil & Kathie Pereverzoff

Category #1 - 100SQ FT – 1800 SQ FT (25 Stores in Category)

#1Barrhead, AB (#229)Emil & Dawn Paquette

#2Moosomin, SK (#324)Jack & Judith Gillis

#3Joyce St.Vancouver, B.C. (#168)Joseph & Jessica Jaurigue

#4Martinsville, SK (#308)Ken & Myrna Warner

#5Oliver, BC (#109)Sandra Butcher

Note:If your store is in the wrong category, please advise Head Office immediately and we will correct immediately. Remember store sizeis determined on Retail Space only and does not include backroom.

Largest % Increase over Prior Year

#1Moosomin, SK (#324)Jack & Judith Gillis104.96 %

#2Penticton, BC (#102)Al & Margaret Johnson 34.62 %

#3Inverness, NS(#802)Alfred & Lucille Poirier 30.89%

Largest % Increase over Prior Year – Expanded Stores, New Owner or New Location

#1High River, AB (#249)Michael deVisser 163.92 %

#2Ft. McMurray, SK (#203)Doug & Miranda Marcinowski/MGR-Joy Noseworthy 143.08%

#3Weslock, AB (#213)Cliff & Linda Meads 57.32%

Are you ready for retail Christmas?

It shouldn’t come as much of a surprise, just like clockwork, the Christmas rush is on and again stores are overwhelmed with customers. This is the real money making season in retail and its important to make sure your store is fine tuned in order to maximize profits. During these busy months, it’s easy to overlook critical components of your business which compounded, may lead customers to abandon your store for the competition.

1.)Core Items:As we have identified and continue to stress, core items are the staple items in our business. Why are some of our competitors successful? Because they constantly have their stores full of core items and refuse to disappoint their consumers. The same core items that are selling today will be selling a year from now, so stock up and give your customers plenty of what they are looking for. Next week we will be introducing a special group buy program with Encore that identifies 70 top selling core items with their company. Price decreases have been based on increased minimum pack sizes, but knowing these items will continue to sell year round should prompt you to stock up and take advantage. Please note order lead time will be 3 months so you have plenty of time to prepare. (Promo information was sent out yesterday)

2.)Are You Priced Competitively? Price gouging will only frustrate customers and destroy your rhythm. Price check your competition but more importantly, follow the price grid and pricing recommendations set out by Head Office. For instance, we’ve negotiated excellent pricing with Coca Cola on their products, but for the model to work, you must follow our pricing structure set out. We negotiate pricing based on retail pricing and when it’s not followed, you can kill your volume. For example, do not sell Coke 591 ml for $1.79 as a few stores are doing. It’s to be priced $1.00 - $1.25 max. depending on your marketplace. To stay competitive we have to compete on the dollar items, knowing we can make that margin back in other areas:

1. Gift items and items priced above $3

2. Taking advantage of pre-booking discounts and group booking discounts

3. Sign on with TD Merchant Services – you will save on transaction fees

4. Focus on departments your competitors are weak at (party, crafts, scrapbooking, etc.)

3.)Consistency: Is your store consistent? Can your customers rely on you on to fulfill their wants and needs? Running a consistent business is a great way to advertise via word of mouth. It’s no secret people share their shopping experiences with family and friends. Get your customers excited and telling others about the treasures they found at Your Dollar Store With More. After all there is so much to talk about and we all know our customers get excited, “you won’t believe what I bought for $1 today” or “can you believe this picture frame was only $5?” These comments will peak the curiosity of others and referrals is a great and inexpensive way to grow your business. Consistency will never disappoint a customer, unless you consistently operate a weak store.

4.)Keep Your Store Full: It’s a simple statement but sometimes a difficult objective. Think of it this way, in December, if you have it they will buy it. Loading up on core items will allow you to maximize sales when traffic counts are high while allowing you to maintain low levels of out of stocks into the New Year. Unlike a grocery store, our core items don’t expire, so load up today and let the product turn itself.

5.)Customer Service: It’s hard to keep a smile when tills are lined up and kids are screaming, but a little extra effort during this time of the year will pay dividends for your business. We know our competitors are generally weak in this category so let’s capitalize and use this to our advantage. Having your staff wear a Santa hat or reindeer antlers will create a fun and calming atmosphere amongst all the commotion. It will also help to identify your staff to your customers when the store gets busy.

This is the month we work for all year so it’s critical that we prepare for the rapid explosion in sales. Are you prepared? Is your staff prepared? If yes, then work your plan and enjoy the busiest month of the year! If not, get any remaining orders in and structure a game plan today…. After all, there are only 19 sleeps till Santa arrives!

Congratulations to our Top Producers and all other franchisees for their continued hard work and business excellence!

Cam Uzelman

Chief Operating Officer

PS – Please respond to the Encore Sales Group Buy Program that has been sent out to you in the Tues. Dec. 5th newsletter. A copy of the program has also been posted in the “Specials” section of our website. There are some significant savings on some very solid everyday “core items” that sell well through our stores. If participation is good throughout our franchise chain, we can look forward to negotiating additional programs like this with other key suppliers.

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