Dollarama expects higher sales as inflation-hit shoppers look for discounts
Canada’s inflation rate steady at 3% in August as travel costs soar
Canadian retailer Dollarama raised annual comparable sales growth forecast on Wednesday, as budget-conscious shoppers increasingly opted for its discount everyday products while contending with higher cost of living.
As consumers look for ways to stretch their budgets, many have shifted to affordable alternatives across categories ranging from pantry staples to personal-care products, boosting traffic at dollar stores such as Dollarama, which sells merchandise at price points of up to $5.
The discount retailer expects annual comparable sales in Canada to grow between four per cent and 4.5 per cent, compared with its previous forecast of a three to four per cent rise.
“At a time when households are making careful spending decisions, customers continued to count on Dollarama for dependable value,” CEO Neil Rossy said.
Get daily National news
Get daily Canada news delivered to your inbox so you'll never miss the day's top stories.
Comparable sales at its Canadian stores rose 5.4 per cent in the second quarter, driven by a 3.7 per cent increase in customer traffic. Average transaction size increased 1.7 per cent, from two per cent growth in the prior quarter.
Story continues below advertisement
Business Matters: Canada’s inflation holds at 3% in August
Dollarama maintained its outlook for Australia and said it expects the segment to post a net loss in fiscal 2027 as it continues to invest in business transformation initiatives.
Renewed trade tensions have added another layer of uncertainty for retailers. After the U.S. imposed 50 per cent tariffs on $27.6 billion worth of Canadian goods in August, Canada hit back with 15, 25 and 50 per cent levies on $27.6 billion of U.S.-origin imports, including appliances, electronics, steel, dairy and agricultural equipment.
Dollarama sourced 54 per cent of its Canadian procurement volume from North American vendors in fiscal 2026, while directly importing the remaining 46 per cent from overseas suppliers, mostly in China, as of Feb. 1.
The company posted quarterly earnings per share of $1.29, while analysts estimated $1.25, according to data compiled by LSEG.
Story continues below advertisement
Its second-quarter sales of $2.03 billion were largely in line with the estimate.
KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.