Dollarama reported strong top line growth for its first quarter fiscal 2020, with a 9.5 per cent increase in sales and close to 6 per cent increase in comparable store sales when compared to the same period in 2019.
In a conference call with investors and media, CEO Neil Rossy said he was pleased with the results.
According to business news reports, Dollarama had not had traffic growth in more than a year, but the first quarter results reversed that trend with a 5.8 increase in comparable store sales.
Asked about how the company is attracting customers and boosting sales amidst a stall in price inflation (competitors in the US and Canada have limited price hikes and Dollarama has maintained a maximum $4 price-point), the Globe and Mail reports that chief executive Neil Rossy was “tight-lipped” but did acknowledge “that a move to funnel customers into single-line checkouts has increased impulse purchases for things such as chocolates and batteries.”
Dollarama currently operates a network of about 1,230 stores in Canada and plans to open between 60 and 70 new outlets this fiscal year.