Galvanized by its good financial results, Dollarama wants to open even more stores than planned. The Montreal company wants to open 600 new stores in Canada in the next 10 years.
The low-cost retailer, which currently has 1,601 stores coast-to-coast, had set a goal of having 2,000 locations by 2030. It now wants to open 200 more by 2034.
In recent years, Dollarama has opened between 60 and 70 new stores per year. Sales followed, as consumers flocked to discount stores due to the rising cost of living.
Sales on the rise
The Montreal chain also announced Wednesday that its sales reached $1.6 billion in the third quarter, which represents an increase of 5.7% compared to the same period last year.
Dollarama has also entered into an agreement to acquire land in the Calgary region in order to eventually build a warehouse and a distribution center to serve its stores in Western Canada.
The land cost $46.7 million, and the new center is scheduled to be operational by the end of 2027. The bill for the construction of this facility is estimated at $450 million.
More customers, but…
The company’s financial results also show that consumers shop more often at Dollarama, but that they spend a little less each visit.
Thus, the company reported a 5.1% increase in transactions in the third quarter, but a 1.7% decrease in the average value of these purchases.
Another interesting fact to note is that sales increased despite a decrease in consumer spending to prepare for Halloween this year: Dollarama sold fewer “seasonal” products, but customers bought even more items like food and household products.
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