The Globe and Mail reports in its Friday, June 12, edition that budget-conscious Canadian shoppers boosted Dollarama's sales and profits in the first quarter, but executives remain cautious amid signs of an affordability crisis.
The Globe's Susan Krashinsky Robertson writes that Dollarama chief financial officer Patrick Bui on Thursday said: "Following years of inflation, consumers continue to face more inflation and rising costs. ... While this reinforces the importance of affordability and value in purchasing decisions, overall consumer confidence appears to be weakening."
Despite the cautious commentary, Dollarama has experienced continued strength in its home market.
Dollarama reported on Thursday that its same-store sales grew by 5.6 per cent in the first quarter, which ended May 3.
That blew past analysts' expectations of 3.6-per-cent growth.
Dollarama is keeping its previous forecasts for sales growth this fiscal year unchanged. Dollarama expects same-store sales growth to slow slightly, increasing between 3 per cent and 4 per cent compared with last year.
Dollarama's sales jumped to $1.85-billion in the first quarter, a 21.4-per-cent increase compared with the same period last year.
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