Dollarama Is Raising Prices But Not Changing Its Name
Some items will now cost $5.
A Dollarama aisle. Right: A Dollarama sign in downtown Montreal.
Dollarama enthusiasts will soon have to dish out more cash for their favourite items. The discount retailer is driving up the cost of its top-tier goods to $5 over the next year. The highest price tag has been $4 since 2016 when the company last raised prices.
The move comes as the company expands in Canada during a record-high inflation year. The country's inflation rate exceeded 5% in January, the highest jump in more than three decades.
Even with costs going up, due to pandemic-related supply chain delays and gas price increases, Dollarama saw healthy profits in 2021.
The Montreal-based company announced in a news release Wednesday that sales increased by 11% by the end of the 2021 fiscal year compared to 2020, raking in a net income of $663.2 million over the fiscal year, while earnings for shareholders went up to $2.19 a share (up from $1.82 the previous year).
"Dollarama delivered strong operational and financial results [in 2021], including EPS growth of 20%, all this while navigating the ebb and flow of the pandemic's impacts on retailers and consumer shopping patterns and in the context of supply chain and inflationary pressures," said Dollarama President and CEO Neil Rossy.
While "supply chain and other inflationary pressures are expected to be felt more" in 2022, the retailer is still holding fast to plans to expand in Canada.
Up to 70 new locations could open their doors in the next year as part of a longer-term goal to have 2,000 stores operating across the country by 2031.
A new Dollarama warehouse is expected to open in Laval by year-end to supply the company's growing number of outlets.
This article's cover image was used for illustrative purposes only.