Dollarama reported growth for its fourth quarter and fiscal 2020 with comparable store sales growth of 2.0 per cent in Q4 and 4.3 per cent increase for the full year fiscal 2020. It also announced it was suspending guidance for its fiscal 2021 “due to the exceptional circumstances stemming from the global COVID-19 pandemic.”
Neil Rossy, president and CEO, says the company is “pleased with our comparable store sales growth and particularly the strong increase in store traffic and transaction size in fiscal 2020. Our performance in these key metrics demonstrates the effectiveness of our sales, merchandising and operational strategies in a context of limited price inflation, and the enduring strength of Dollarama's unique business model."
He adds that “the strong momentum of the fourth quarter carried over into early Fiscal 2021 and then we experienced a surge in transactions as customers stocked up on everyday essentials due to COVID-19. This was followed by lower traffic as a result of public health measures directing Canadians to stay home as much as possible. In the current unprecedented situation, we cannot predict how shopping patterns will evolve, but as an essential business, we remain committed to maintaining well-stocked stores and the same compelling value proposition that has made Dollarama a household name and the weekly shopping destination for affordable everyday products for millions of Canadians.”
The retailer says it saw sales surge in February and early March as customers stocked up, but then drop off as increasingly strict measures were taken to slow the spread of the novel coronavirus.
Dollarama reported a fourth quarter profit of $178.7 million, up from $171.0 million in the same period a year earlier. Sales for the 13-week period ended February 2 was nearly $1.07 billion, up from the close to $1.06 billion in a 14-week period that ended February 3, 2019.
During the fourth quarter of Fiscal 2020, Dollarama opened 20 net new stores compared to 33 net new stores during the corresponding period last year. The retailer currently has 1,237 locations across Canada.