Dollarama among top retail winners in Canada
While luxury stores like Nordstrom close all of its locations across Canada, bargain retailers like Dollarama are reporting record level profit. With over 1400 stores across Canada Dollarama is Canada’s biggest retailer of items for five dollars or less. Not only are they the biggest dollar store in Canada but one that makes most profit as well.
Taking in account Canadian inflation and general cost of living in Canada, increased dollar store popularity among Canadians was not hard to forecast. Dollarama reported a fourth-quarter profit of $261.3 million, which went up from $220.0 million a year earlier. A raise of $41.3 million in profit was been the contributor of raise in dividend. The retailer has increased its quarterly payout to 7.08 cents per share from 5.53 cents per share.
READ MORE: Restaurants and Bars fear the worst while alcohol taxes jump
Dollarama reported earnings of 91 cents per diluted share for the 13-week period ending Jan. 29, up from 74 cents per diluted share the previous year.
The quarter’s sales totaled $1.47 billion, up from $1.22 billion the previous year.
According to Dollarama, comparable-store sales climbed 15.9%, while transaction volume increased 14.1% and average transaction size increased 1.6%.
In its fiscal year 2024 outlook, the business predicts 60 to 70 net new store openings and 5.0 to 6.0 percent growth in comparable store sales. Dollarama anticipates profit margins ranging from 43.5 to 44.5 percent.
These days not many Canadian businesses can report such increase in sales and profit margins!
In the resent history, Canadians saw the fall of big players like Sears, Eatons, Zellers, Target, National Sports, Nordstrom, Bed Bath and Beyond and many more smaller store chains who were selling mid and upper priced quality items.
This switch in shopping habits appears to be the era of bargain, low priced items in Canada.
READ MORE: This is why Contractors don’t buy Electric Vehicle in Canada