Discount retailer Dollarama has announced that it is set to expand towards 1,200 Canadian locations over the coming years, Canadian Grocer reports.
The chain, which operates 917 stores, said that it expected to continue adding locations annually until it reached a saturation point of some 1,200 stores under its current store format. It said its approach would be not to offer more lower margin grocery or pharmaceutical items.
The news comes as Dollarama announced largely positive second quarter financial results, with sales increasing to CA$572.6 million ($522.4 million) from CA$511.3 million ($466.5 million) year-on-year and same-store sales increasing 4.2% .
The company also said that its profit increased 15.3% from a year ago to CA$68.8 million ($62.8 million) as the result of a 12% boost in sales.
CEO Larry Rossy commented : “I think that the offering that we have today and the categories that we have are exactly what the customers expect and we don’t want to transition our store into a grocery store – absolutely not because we like the margins we’re making and we’re not favourable to the margins of the grocery industry”.
Source: Canadian Grocer