DOLLARAMA SHARES UP AS IT BEATS Q4 EXPECTATIONS.
TORONTO • Dollarama is going to get even bigger than its management had envisioned previously, with a new plan to operate as many as 1,700 locations across the country, up from an earlier growth ceiling of 1,400.
The news, coupled with exceptional fourth-quarter earnings and confirmation that the country’s biggest dollar store chain will begin accepting major credit cards at its stores next quarter, pushed the Montreal company’s shares up by more than nine per cent on Thursday.
Dollarama, whose competitive clout is unparalleled in Canada with more than four times the store count of U.S.-based rival Dollar Tree, will open the new stores over the next eight to 10 years.
The decision to expand further came after the retailer dug into 2016 census data, assessed population demographics and household income, and gauged the strong performance of its existing and new stores, chief executive Neil Rossy told analysts on a conference call to discuss fourth-quarter earnings.
Consumers have even taken to the company’s higher price points, introduced last year.