15:34:35 EDT Mon 13 May 2024
Enter Symbol
or Name
USA
CA



Dollarama Inc
Symbol DOL
Shares Issued 281,241,629
Close 2023-12-22 C$ 94.19
Market Cap C$ 26,490,149,036
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Globe says Dollarama customers can't keep away

2023-12-27 08:32 ET - In the News

The Globe and Mail reports in its Saturday, Dec. 23, edition that according to legend, if you place a frog in lukewarm water and gradually turn up the heat, the animal will not sense the temperature change and will boil to death. The Globe's John Heinzl writes that if you shop at Dollarama, you are the frog. Even as the retailer has been raising prices in recent years -- the most expensive items now cost $5 -- customers keep coming back for more. In the third quarter, Dollarama's revenue jumped by nearly 15 per cent to $1.48-billion -- driven by new store openings and the sixth consecutive double-digit increase in same-store sales -- as earnings rose 29 per cent to $261.1-million or 92 cents a share. Not only is Dollarama's customer traffic now eclipsing prepandemic levels, but the average transaction size is about 26 per cent higher, says RBC's Irene Nattel. She says, "Price points up to $5 should sustain [the] upward trajectory." Just to set the record straight: Despite what the legend claims, frogs will indeed climb out of the water before they boil to death. However, in Dollarama's case, customers do not appear to be in a hurry to leave any time soon.

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