Dollarama is planning a huge expansion across Canada with hundreds of new locations.
The discount retailer reported the news in its fiscal 2025 third-quarter results, released on December 4.
Dollarama noted that this planned boost in retail locations follows its updated evaluation of the market potential for its stores across the country.
In its third quarter, Dollarama’s sales increased 5.7% to $1.56 billion, up from $1.48 billion during the same time last year.
The growth led to the opening of 18 new stores, bringing the company’s total to 1,601.
It also reported a 3.3% increase in comparable store sales, which followed an impressive 11.1% growth in the same quarter last year.
The Montreal-based corporation said these sales were “driven by customer demand or consumables, offset by softer demand for seasonal items, compared to the same period last year.”
The latest results continue Dollarama’s impressive economic performance over the past few years, despite facing a class-action lawsuit over hidden fees.
In a previous interview, Sylvain Charlebois, director of the agri-food analytics lab at Dalhousie University, told Daily Hive that Dollarama’s rising popularity can be tied to Canadians “looking for options to save money.”
“[Dollarama’s] business model is very lean. They keep things tight with operational costs. And so that’s why typically when Dollarama sees more traffic, they see more profits,” he said.
New Dollarama stores and logistics hub
Wannee_Photographer/Shutterstock
As for how many new stores Dollarama has in the works, the company aims to increase its network from 2,000 stores by 2031 to 2,200 stores by 2034.
Dollarama president and CEO Neil Rossy noted management was “pleased with [its] financial results in the third quarter of fiscal 2025,” leading to the revaluation of store growth.
“Our performance demonstrates the enduring relevance of our business model for consumers from coast to coast,” he said.
Along with additional stores, Dollarama also plans to build a new logistics hub in Calgary, Alberta, and has acquired land for the development for $46.7 million.
The company says it will build a warehouse and second distribution centre to service stores in Western Canada, and the centre will be operational by 2027.
Dollarama said the “two-node” logistics model will optimize warehousing and distribution operations while supporting its growth plans and generating cost savings.
“We’re excited about the future,” Rossy concluded.
“The investments we are making today in our logistics network, store expansion, and international business will provide a solid foundation for growth and profitability in the years to come.”