Can't stop, won't stop: Everybody is shopping at Dollarama
Despite consumer outrage over the fact some things cost five bucks there these days — a miscarriage of retail justice if there ever was one — shoppers keep going back to Dollarama.
What happened: The bargain seller reported a 24% jump in profits for the final quarter of 2023 alongside an 8.7% rise in comparable store sales (which tracks growth without counting new locations) as Canadian shoppers increased their number of dollar store trips.
- These blockbuster numbers came despite the average shopper buying fewer items per trip and an increase in shoplifting (though theft is plateauing, apparently).
Why it’s happening: With groceries, interest rates, and economic anxiety all still elevated, everyone is looking to save money, no matter the income bracket. Dollarama’s CEO said that they saw increased traffic from both low-income shoppers and those making over $100,000.
- And shoppers don’t have to give up on their fave brands to save. Over a third of Dollarama’s products are brand-name, ranging from groceries to cleaning supplies.
They even recently added, of all things, products from Kylie Jenner’s skincare line.
Why it matters: Right now, for retailers, it’s a race to the bottom to compete on price, which allows Dollarama to aggressively expand while others retreat. The chain plans to open 60 to 70 new locations across Canada this year after already opening 65 of them last year.
Zoom out: It’s not all sunshine and celebrity beauty products for Dollarama. The company is paying $2.5 million to settle a class-action lawsuit over a misleading “ecofee” on electronic products. Btw, if you want a piece of the pie, registration for compensation ends today.
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