While total sales increased 1.6 per cent to 1,029.3 million, same-store sales decreased by 5.1 per cent driven by the ban on the sale of non-essential products in Ontario that was in place for the first five and a half weeks of the quarter (May 3 to June 10, 2021).
By comparison, following the lifting of the Ontario ban, Dollarama saw sales surge by 5.1 per cent year over year.
“Our top-line performance in the second quarter of Fiscal 2022 reflects the impact of COVID-19 restrictions in place throughout the quarter, most notably a 5.5-week ban on the sale of non-essential products in our largest Canadian market during peak spring sales season,” said president and CEO Neil Rossy. “We nonetheless delivered positive EPS growth in a challenging landscape for value retailers, and we were pleased to see a notable uptick in customer traffic in our stores, a trend we continue to see today. Over 18 months into the pandemic, our fundamentals and value proposition are strong, and we are well-positioned to continue serving Canadians from all walks of life as the economy reopens.”
The ongoing COVID-19 pandemic and various measures taken by provincial governments to curb its spread impacted Dollarama’s results during the second quarter of Fiscal 2022. Specifically, the Ontario ban on the sale of non-essential products limited Dollarama’s ability to sell a large proportion of its seasonal and all-year product offering for a meaningful period of time, while stay-at-home measures and in-store capacity limits in many provinces also impacted consumer shopping patterns throughout the quarter.
Dollarama says the future impact of the ongoing COVID-19 pandemic on consumer shopping patterns and the corporation’s results, including potential additional measures that may be taken by provincial governments in response to a fourth wave as well as the pandemic’s disruptive effect on international freight among other external factors, remain difficult to quantify or forecast.