Dollarama Plans to Open up to 70 New Canadian Stores in 2024 as Sales Boom

People walk into a Dollarama store in Toronto, September 25, 2021. (The Canadian Press/Graeme Roy)

As Canadians deal with rising inflation and higher prices for food, fuel, and home heating costs, discount chain Dollarama says demand has boomed for bargains and the dollar store giant plans to open more stores next year.

The Montreal-based retailer reported its fourth-quarter growth on March 29, saying comparable store sales grew 15.9 percent and fiscal year 2023 growth was up 12 percent. A news release from the company said the discount giant met expectations on all key metrics.

Fourth-quarter sales increased by 20.3 percent, to $1.47 billion, compared to $1.22 billion for the fourth quarter of fiscal year 2022, said the company.

“This increase was driven by growth in the total number of stores over the past twelve months (from 1,421 stores on January 30, 2022 to 1,486 stores on January 29, 2023) and in comparable store sales,” said the March 29 release.

The retail chain’s 2024 outlook includes a plan for 60 to 70 new store openings and comparable store sales growth ranging from five to six percent.

The company said the introduction of additional price points up to $5.00, strong demand for consumable products, seasonal items, and general merchandise, as well as the continued change in what products are offered for sale, contributed to comparable store sales growth.

Dollarama President and CEO Neil Rossy also attributed the stores’ growth to economic uncertainty and inflationary pressures on consumers.

In December 2022, Dollorama’s chief financial officer J.P. Towner said the chain experienced “higher than historical demand” for consumable products, which includes food, and one-use items like laundry soap. He said Canadians are looking for lower prices on household goods.

Dollarama started with prices between $1.25 and $2.50, but Rossy said additional items are now carried up to a $5 price tag without consumer complaint.

The retail chain said it likes to have a $1 offering in each category, however Rossy said in December 2022 that this is not always possible due to raw material costs and higher prices from domestic vendors.

The Canadian Press contributed to this report.