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Canada's Dollarama beats sales estimates on consumer stockpiling

June 10, 2020

Canadian discount retailer Dollarama Inc beat estimates for quarterly sales on Wednesday, as consumers bought more groceries and other essentials per visit to its stores amid the coronavirus crisis.

Deemed an essential business, Dollarama saw higher demand for basic products, including cleaning supplies and packaged foods, in late March and early April, as most of its stores remained open while the coronavirus crisis brought many Canadian businesses to a virtual halt.

Dollarama said it witnessed a 22.6% increase in average transaction size even as the number of transactions declined 17.9%, as consumers visited less frequently yet bought larger quantities of goods.

Same-store sales, excluding temporarily closed stores, rose 0.7%, while analysts on average had expected a 1.76% decline. As of June 8, 32 Dollarama stores were temporarily closed, it said.

Sales rose to C$844.8 million ($631.30 million) from C$828 million, beating estimates of C$839.8 million. Excluding items, it earned 27 Canadian cents, compared with Wall Street estimate of 26 Canadian cents, according to IBES data from Refinitiv.

Coronavirus: Dollarama workers in Montreal demand health be put above profits

Mostafa Henaway of the Centre for Immigrant Workers, the organizer of the demonstration, alleges that behind the walls of its warehouses and its distribution centre, the Quebec retailer is content with the bare minimum and sometimes even violates the law.

In particular, Mr. Henaway said that physical distance is almost impossible to respect in the distribution centre, where nearly 1,000 workers work side by side. Employees are constantly on the move, passing around boxes, there is only one bathroom and break room, he said.

Several employees who complained about working conditions in the context of COVID-19 were dismissed outright, protesters say, so that a climate of fear prevails in the company’s facilities.

One of them, Aines Charles, despite his 10 years of service, is said to have been dismissed after having indicated to a supervisor the presence of numerous cases of COVID-19 among his colleagues.

Management then asked the employment agency that employed him to terminate his employment, according to protesters.

Another was also reportedly removed from the ranks of the company for calling for more protective measures.

“I was called to the office the same day and terminated my contract after three years of work,” said the statement.


Dollarama to open more than 600 stores in Canada over next decade

March 31, 2021

Dollarama (DOL.TO) is expanding, and will open hundreds of new stores in Canada over the next decade, after the company saw sales rise in a year marked by the COVID-19 pandemic.

The Montreal-based company, which reported fourth-quarter earnings on Wednesday, said it will open more than 600 new stores in Canada by 2031, bringing its overall store count to 2,000. That's an update from its previously disclosed target of 1,700 stores nationwide by 2027. According to Dollarama, there are 1,356 store locations across the country as of Jan. 31.

"Our hard-earned position as a weekly shopping destination for millions of Canadian families has been reconfirmed and strengthened by the pandemic," chief executive Neil Rossy said on a conference call with analysts on Wednesday.

"Based on our experience, our historical performance and what we see going forward, we feel very confident in raising our long-term store target."

Took this photo a few weeks ago at Kipling Plaza (2141 Kipling Ave.) in Rexdale. The grey marquee to the right has since been painted green. Rumour
has it that a Dollarama will be set up here.


There's also another rumour floating around that two vacant stores (which stand side by side) in the Albion Mall (Your Dollar Store with
more & Ardene) will become a Dollarama as well.


Personally, I can't see it. The two vacant spaces seem too small. Plus, there's already a Dollarama set up down the street at the
Finch-Albion Centre.
There's two plazas in Mississauga across the road from each other that both have Dollaramas, on Dundas east of Dixie (1475 Dundas St E, and 1476 Dundas St E are their addresses as listed on the Dollarama website).
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I figure this is a bit like how Starbucks had been known to have locations on multiple corners of the same intersection. It's partly to cannibalize locations that might be otherwise overloaded with sales, and to crowd out other entrants.
Interesting article contrasting Dollarama's success with the recent challenges facing U.S. dollar stores.

The story is one of :

Even greater extreme poverty in many parts of the U.S. limiting the ability of many U.S. dollar stores to raise prices (Dollarama maxes out at $5 CAD now, most U.S. stores are still at $1USD / or about $1.36CAD.

In addition to that, the U.S.retail market is more saturated and competitive, meaning lower margins.

Also noted though is that Dollarama retains among the leanest logistics in the business.