Dol­larama un­fazed by ar­rival to Canada of China’s Min­iso

The Hamilton Spectator - - CANADA & WORLD - ROSS MAROWITS MON­TREAL —

Dol­larama Inc. says it’s not wor­ried about the ar­rival to Canada and growth plans of Chi­nese dol­lar store chain Min­iso.

“We con­sider them a pure China-based, Chi­nese im­port dol­lar store,” Dol­larama CEO Neil Rossy said Wed­nes­day dur­ing a con­fer­ence call about its lat­est quar­terly re­sults.

“They do a very nice job in stores about one quar­ter to one third the size of ours.”

Min­iso has opened six stores in Bri­tish Columbia and hopes to reach up to 50 lo­ca­tions by the end of next year, in­clud­ing On­tario, Que­bec and Al­berta.

Over­all, the firm hopes to have 6,000 stores around the world by 2020.

Rossy said Min­iso’s mer­chan­dise is fo­cused on “de­sign-ori­ented non-es­sen­tials” which is a dif­fer­ent cus­tomer base than Dol­larama. The Cana­dian re­tailer caters to many shop­pers with a broad of­fer­ing of food, kitchen­ware, party dec­o­ra­tions, toys and sea­sonal goods.

“We will con­sider them as com­pe­ti­tion as we con­sider all the other re­tail­ers in Canada as com­pe­ti­tion. But there’s noth­ing for us to react to at this time.”

The Que­bec-based dis­count re­tailer said it earned $130.1 mil­lion of $1.15 per di­luted share in its third quar­ter, up from $110.1 mil­lion or 92 cents per share a year ago when it had more shares out­stand­ing.

An­a­lysts on av­er­age had ex­pected a profit of $1.11 per share, ac­cord­ing to Thom­son Reuters.

Sales in the 13 weeks ended Oct. 29 to­talled $810.6 mil­lion, up from $738.7 mil­lion.

Com­pa­ra­ble store sales grew 4.6 per cent as the av­er­age trans­ac­tion size grew 4.5 per cent and the re­tailer saw a 0.1 per cent in­crease in the num­ber of trans­ac­tions.

Dol­larama said it has no im­me­di­ate plans to ex­pand its price points be­yond $4.

“We had 17-plus years to master $1, and it’s go­ing to take us a bunch of years to master $3.50 and $4,” Rossy said.

Dol­larama had 1,135 stores at the end of the quar­ter, up from 1,069 stores a year ago.

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