Dollarama hopes to open around 70 new stores in the next year

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As Canadians continue to pinch pennies, discount retailers like Dollarama are seeing incredible numbers, and the dollar store chain is planning a sizeable expansion in the upcoming fiscal year.

According to a fiscal report from Dollarama, the company is planning 60 to 70 new store openings in its upcoming Fiscal 2024. In addition, Dollarama managed to open 65 new stores during its Fiscal 2023.

The company, headquartered in Montreal, saw sales increase by 20.3% in the fourth quarter of Fiscal 2023 compared to Fiscal 2022, amounting to $1,473.2 million.

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“Our outstanding performance in Fiscal 2023, including a 12% increase in comparable store sales and EPS growth of 27%, further reinforces the relevance of our value retail concept for consumers, the enduring strength of our unique business model, and our disciplined execution,” Dollarama President and CEO Neil Rossy said in a statement.

Dollarama currently has nearly 1,500 locations, and in 2021, the chain suggested it would expand with 700 new stores across Canada extended through 2031.

The fiscal report also suggests that expected lower freight and logistic costs on imported goods should positively impact gross margins.

Dollarama’s fiscal report outlines its expansion plans based on several assumptions, including the absence of “pandemic-related restrictions impacting consumer shopping patterns” and the lack of “unusually adverse weather, especially in peak season around major holidays and celebrations.”

In times of rising inflation and interest rates, with prices on food and other goods increasing, it’s no surprise that Dollarama is seeing so much success, with fixed costs of up to $5 on all merchandise.

Click here for the full report.

Dollarama was recently named one of the most respected Canadian retailers in the country.