Dollarama believes there is room in Canada for more of its discount stores — a lot more.
The Montreal-based company’s most recent fiscal reporting, released Dec. 4, shows the company is planning to increase its store growth target.
The company has updated its long-term target to 2,200 stores by 2034, from the previous target of 2,000 stores by 2031.
As of Oct. 27, the company was reporting 1,601 stores.
“Our performance demonstrates the enduring relevance of our business model for consumers from coast to coast,” said company president and CEO Neil Rossy in a news release announcing the expanded store target.
The company reported sales growth of 5.7 per cent during the third quarter of fiscal 2025 (ending on Oct. 27, 2024) compared to third quarter of fiscal 2024 ($1,562.6 billion compared to $1,477.7 billion). This includes increased sales driven by the growth in the number of stores.
Year-over-year sales growth at existing stores increased by 3.3 per cent. This includes a 5.1 per cent increase in the number of transactions and a 1.7 per cent decrease in the average size of transactions.
Western Canada expansion
Growing sales and store numbers weren’t the only expansion figures included in Dollarama’s fiscal update.
“We are also setting in motion plans for a future logistics hub in Western Canada, in complement to our currently centralized logistics operations in the Montreal area, to support our growth and optimize our logistics for the long term,” Rossy said in the release.
Dollarama has announced it has entered into an agreement to purchase land in the Calgary region at a cost of $46.7 million.
The company plans to build a warehouse and second distribution centre to service its stores in Western Canada. These new facilities are expected to be commissioned by the end of 2027.
