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Industry NewsDollarama sales, profits increase on strong demand for consumables

Dollarama sales, profits increase on strong demand for consumables

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Dollarama sales and profit increased in its first quarter fiscal 2023 with sales climbing 12.4 per cent to $1.07 billion, up from $954.2 million, and profit of $145.5 million, up from $113.6 million in the same quarter last year.

Dollarama CEO Neil Rossy says with the lifting of COVID-19 restrictions early in the quarter the company saw a double-digit increase in customer traffic, coupled with strong demand for everyday consumables and seasonal products. 

Dollarama also started rolling out new price points up to $5 as it adds new products and restocks others amid a shift in consumer spending patterns, as reported by the Canadian Press.

The dollar store will now stock goods from under $1 to $5, the company said as it reported quarterly earnings.

“Mindful of the challenging environment in which we are operating, we will continue to rely on the levers at our disposal to mitigate ongoing supply chain and cost pressures, while providing consumers with the best relative value on the market,” he adds.

Comparable store sales grew 7.3 per cent over the 5.8 per cent growth in the same period last year. The growth consisted of a 14.4 per cent increase in the number of transactions and a 6.2 per cent decrease in average transaction size, reflecting a reversal in consumer shopping patterns compared to the prior year comparable period. Dollarama says the increase in comparable store sales is attributable to “good seasonal performance and higher sales of consumables resulting in increased customer traffic across the store network year over year, whereas the same quarter last year was marked by a ban, effective April 8, 2021, and lifted after quarter-end on June 11, 2021, on the sale of non-essential goods in Ontario, where approximately 40 per cent of the corporation’s stores are located.”

New store openings also helped drive up sales. The company opened 10 net new stores in the first quarter, for a total of 1,431 stores as of May 1, 2022. 

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