For its second quarter that ended in late July 2023, Dollarama Inc. reported that sales were up by 19.6 percent to $1,455.9-million(Cdn) compared to $1217.1-million(Cdn) in the corresponding period of the prior fiscal year. The increase was driven by growth in the total number of stores over the past twelve months and increased comparable store sales. The chain ended the quarter with 1525 stores in operation, adding 81 stores compared to the previous second quarter. Comparable store sales for the second quarter of Fiscal 2024 increased by 15.5 percent, consisting of a 12.9 percent increase in the number of transactions and a 2.3 percent increase in average transaction size, over and above comparable store sales growth of 13.2 percent in the corresponding period of the prior fiscal year. The increase in comparable store sales is primarily attributable to higher sales across the company’s product categories, including continued higher than historical demand for consumables. In the second half of Fiscal 2024, Dollarama expects to continue to benefit from strong demand for its affordable, everyday items in the current macro-economic and inflationary context. As a result, the corporation has revised its comparable store sales growth guidance upward for the full fiscal year. The chain still expects to add 60 to 70 new stores in Fiscal 2024 but anticipates comparable store sales to be in the ten to eleven percent range. The company had previously expected comparable store sales to be up by five to six percent. The Dollarama stores operate in 8000 to 15,000 square foot locations in malls, strip and power centres, lifestyle centres and street front locations in metropolitan areas, mid-sized cities and small towns all across Canada. Dollarama’s Canadian site selection is handled by Oberfeld Snowcap. In mid-August 2023, the corporation closed its previously announced acquisition of three contiguous industrial properties in the Town of Mount Royal in Quebec, for a total cash consideration of $88.1-million, which takes into account closing adjustments. The properties are situated near Dollarama’s centralized logistics operations and adjacent to its distribution centre. The corporation’s 50.1 percent share of Latin American value retailer Dollarcity’s net earnings for the period from April 1, 2023 to June 30, 2023 was $11.4-million, compared to $7.7-million for the same period last year. The corporation’s investment in Dollarcity is accounted for as a joint arrangement using the equity method. During its second quarter ended June 30, 2023, Dollarcity opened ten net new stores, compared to 19 net new stores in the same period last year. And at the end of the quarter, Dollarcity had 458 stores with 272 locations in Colombia, 93 in Guatemala, 66 in El Salvador and 27 in Peru.
Oberfeld Snowcap, 8000 Decarie Blvd., Suite 290, Montreal, Quebec H4P 2S4 (514/738-4330)
Dollarama Inc., 5805 Royalmount, Montreal, Quebec H4P 0A1 (514/737-1006 www.dollarama.com)