Canadian discount retail giant Dollarama said March 30 it will “roll out additional price points up to $5.00.” The company said the changes will gradually be rolled out over the course of the corporation’s fiscal 2023.
Dollarama, in its Fourth Quarter and Fiscal Year 2022 Results, said that “over time, this will enable the corporation to maintain and enhance its broad product assortment and compelling value.”
In other words, you’ll be paying more for some familiar items.
This move follows the trend for inflation around the country, with retail outlets already experiencing and planning for continued price hikes on just about everything.
Earlier this month, Statistics Canada reported that Canada’s inflation rate jumped to 5.7 percent in February, up from 5.1 percent a month earlier. That was the largest gain recorded in more than 30 years.
Grocery prices rose by 7.4 percent, the largest yearly increase recorded since 2009.
“Higher input prices and heightened transportation costs continued to contribute inflationary pressure in February,” said Statistics Canada.
For companies like Dollarama, higher prices won’t likely deter customers from its stores, which are already seen as a discount option over other chain retailers.
Dollarama also noted Wednesday that it’s “well-positioned to pursue its profitable growth” over its next fiscal year.
In the first half of Fiscal 2023, Dollarama expects to benefit from what it described as “a favourable sales environment compared to the same period last year, at which time various Covid-19 restrictions impacting retailers and consumer shopping patterns were in place.”
“Supply chain and other inflationary pressures are expected to be felt more in Fiscal 2023,” the report shared, with Dollarama’s quarterly adding the company “has levers at its disposal to mitigate some of the cost pressures on its gross margin. selling, general & administrative expenses, excluding any incremental COVID-related costs, and still expects to benefit from positive scaling and improved labour productivity.”
The company added 24 new stores in the final fiscal quarter of 2022, with Dollarama also reporting same-store sales growth improving by 5.7 percent over the same time.
Already with over 1,400 stores across Canada, Dollarama plans to open 60 to 70 net new stores nationwide in its upcoming fiscal year.
Tyler Mclean is a reporter with Huddle, an Acadia Broadcasting content partner.
