Dollarama posted an increase in first quarter sales and profit, as more Canadians shopped at its stores for affordable goods.
The discount store’s sales rose 8.6 per cent to $1.41 billion in the quarter that ended April 28, compared with $1.29 billion a year ago. Dollarama’s comparable store sales grew 5.6 per cent. Dollarama says this increase was driven by growth in the total number of stores over the past 12 months (from 1,507 stores on April 30, 2023, to 1,569 stores on April 28, 2024) and comparable store sales growth.
Comparable store sales increased by 5.6 per cent, consisting of an 8.7 per cent increase in the number of transactions and a 2.8 per cent decrease in average transaction size, over and above comparable store sales growth of 17.1 per cent in the corresponding period of the prior fiscal year. The increase in comparable store sales was driven primarily by strong customer demand for consumables.
Dollarama has been solidifying its position for Canadian consumers amid changing economic conditions.
“As anticipated, we are seeing a progressive normalization in comparable store sales, with growth primarily driven by persistent higher than historical demand for core consumables and other everyday essentials,” said CEO Neil Rossy in a news release. “As Canadian consumers continue to seek out compelling value for their hard-earned money, we will remain focused on executing on our value and convenience promise.”
Dollarama also said it had acquired an additional 10 per cent stake in Latin American value-retailer Dollarcity, increasing its stake to 60.1 per cent. The company is looking to expand its business in Latin American countries and Mexico, and said the deal is unlikely to impact its net earnings per share for fiscal 2025.
