Walk into any Canadian suburb twenty years ago and you’d likely see the bright red and yellow signage. It was everywhere. Dollar or Two Inc. wasn’t just a store; for many small-town entrepreneurs and budget-conscious families, it was the backbone of the local economy. It’s weird to think about now, given how Dollarama has basically swallowed the entire market share in Canada, but there was a time when this franchise model was the "big dog" on the porch.
Honestly, the retail landscape in the late 90s and early 2000s was a bit like the Wild West. You had these massive franchise groups popping up, promising "recession-proof" business models to anyone with a bit of capital and a dream. Dollar or Two Inc. was the crown jewel of Extreme Retail Advisors Services Inc. (formerly known as Dollar or Two (1995) Inc.). At its peak, the brand boasted over 250 locations across Canada. It was a massive footprint. If you lived in Ontario or the Maritimes, you couldn't throw a rock without hitting a storefront that sold everything from off-brand party supplies to those weirdly heavy ceramic garden gnomes.
What Actually Happened to Dollar or Two Inc.?
Business is brutal. It’s especially brutal when your entire value proposition is based on a price point that inflation is slowly murdering. The "dollar store" concept is a volume game. You need massive scale, incredibly sophisticated logistics, and a direct line to manufacturers in East Asia to keep margins from disappearing.
Dollar or Two Inc. operated on a franchise model. This is key. Unlike Dollarama, which owns its stores and controls the entire supply chain vertically, Dollar or Two was a collection of independent owners paying royalties. While that allowed for rapid expansion without the parent company needing to own the real estate, it created a massive weakness. When the 2008 financial crisis hit, and the cost of goods began to climb, those individual franchisees started feeling the squeeze way harder than a centralized corporation would.
By the time 2010 rolled around, the cracks weren't just showing; the whole building was shaking. The parent company, Dollar or Two (1995) Inc., faced significant financial hurdles. They eventually rebranded and shifted under the umbrella of Extreme Retail Advisors, but the momentum had shifted. Many stores started rebranding as "Extreme Dollar" or simply closed their doors when the lease came up. You’ve probably noticed those stores in your local mall—the ones that look like a Dollar or Two but have a slightly different font on the sign. That's the ghost of the franchise.
The Franchise Conflict Most People Miss
People often ask why some Dollar or Two locations survived while others vanished overnight. It mostly came down to the relationship between the franchisees and the head office. In a franchise system, the head office provides the "buying power." The idea is that 200 stores can buy 10 million plastic spatulas cheaper than one store can buy 500.
But here’s the kicker: if the head office doesn't have the cash flow to secure those massive contracts, the individual store owners are left out in the cold. They end up paying higher prices for inventory, which means they can't actually sell things for "a dollar or two" anymore. They have to raise prices. Once a dollar store starts charging $4.50 for a notebook you can get at a big-box retailer for $2.00, the brand is dead. It's a "death spiral."
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The competitive pressure from Dollarama cannot be overstated. While Dollar or Two was trying to manage a fractured network of independent owners, Dollarama was aggressively standardized. They went public on the TSX in 2009. They had the capital to build massive distribution centers in Montreal. They basically out-muscled everyone.
The Reality of "Value" Retail in the 2020s
Is Dollar or Two Inc. still around? Technically, the legacy lives on through a handful of remaining licensed stores and the entities that took over the brand's assets. But the original dream of a coast-to-coast franchise powerhouse is largely a memory.
The industry has moved toward the "multi-price point" model. If you walk into a "dollar" store today, you’re seeing items priced at $5.00 or even $10.00. The name "Dollar or Two" became a bit of a liability. It boxed them in. You can’t pay rent in a modern Canadian shopping mall by selling $1 items unless you are moving thousands of units per hour.
We should also talk about the shift in consumer behavior. Back in 2002, we didn't have Temu. We didn't have Amazon Prime. If you needed a cheap gift bag or a pack of envelopes, you went to the local Dollar or Two. Today, that convenience is digital. The "treasure hunt" aspect of the dollar store—where you find something surprisingly cool for cheap—is now an algorithm on your phone.
Why the "Extreme Retail" Pivot Failed to Save the Brand
Extreme Retail Advisors tried to modernize the concept. They introduced different store formats. They tried to lean into the "value" aspect rather than just the "dollar" aspect. However, rebranding is expensive. Most franchisees didn't have the $50,000 to $100,000 required to overhaul their storefronts and internal systems during a period of declining sales.
It’s a classic business lesson in capitalization. If you don't have the war chest to fight a dominant market leader, you eventually get relegated to the margins.
What You Can Learn from the Dollar or Two Story
If you’re a business owner or someone interested in the retail sector, there are three massive takeaways from the history of this brand:
- Fixed-Price Traps: Never name your business after a specific price point unless you are certain you can control your supply costs forever. Inflation is a silent killer.
- Franchise Friction: A franchise is only as strong as its distribution network. If the parent company loses its buying power, the franchisees are the ones who pay the price.
- The Middle-Market Moat: Dollar or Two was caught in the middle. They weren't as big as Dollarama, and they weren't as specialized as local boutique discount shops. The middle is a dangerous place to be in retail.
Moving Forward: Navigating the New Discount Landscape
If you're looking for the kind of deals that used to define the Dollar or Two era, you have to be a bit more strategic now. The "dollar" in the name is mostly a marketing relic.
Check unit prices. Frequently, these "value" stores sell smaller packages that actually cost more per gram or per unit than the bulk packs at Costco or Walmart. It's a psychological trick. Watch the brands. Many stores now carry "diverted" goods—genuine name brands that ended up in the discount channel because of packaging changes or overstock. That’s where the real value is.
The era of Dollar or Two Inc. as a national titan is over, but the lessons it left behind regarding franchise stability and the "all-price" retail model are more relevant than ever. Retail isn't about the price on the sign; it's about the efficiency of the ship behind the scenes.
Actionable Steps for the Modern Consumer and Entrepreneur:
- For Shoppers: Stop looking at the "dollar" labels. Use a calculator to check the price-per-ounce. Often, the $1.25 item is 40% more expensive than the $4.00 version at a grocery store.
- For Business Owners: Study the "vertical integration" of Dollarama versus the "franchise model" of Dollar or Two. If you're going into retail, control your supply chain or someone else will control your profit margins.
- For Investors: Look at companies that are moving toward "multi-price" strategies. The "everything for a dollar" model is functionally extinct in the North American economy due to logistics and labor costs.
- Audit your local "Independent" Dollar Stores: Many former Dollar or Two locations still operate under different names but use the same old-school wholesalers. You can often find "deadstock" items here that haven't been seen in mainstream retail for years.