Dollarama announced that it will be phasing in products with a fixed price point of $5 or less.
The retailer notes in its most recent financial results that this decision is consistent with its multiple price point strategy that has been in place since 2009. It believes that over time, expanding its price range will allow it to improve its product mix.
In 2015, Dollarama had added new fixed prices of $3.50 and $4.00 in certain product categories.
Dollarama reported net income of $219.9 million in the quarter ended Jan. 30, compared with $173.9 million in the same quarter for 2021 quarter.
During the same period, basic net earnings per common share increased from $0.56 to $0.74.
Sales for the quarter totalled nearly $1.225 billion, compared to $1.103 billion a year earlier, an increase of 11 per cent.
For the full year of fiscal 2022, the Quebec-based retailer reported net earnings of nearly $663.17 million, compared with nearly $564.35 million for fiscal 2021. Basic net earnings per common share advanced from $1.82 to $2.19 during the same period.
Dollarama's year-over-year sales also increased 7.6 per cent from $4.026 billion to $4.33 billion. Same-store sales increased by 1.7 per cent.
Dollarama president and CEO Neil Rossy calls the operating and financial results for fiscal 2022 strong, despite the changing impact of the COVID-19 pandemic on retailers and fluctuating consumer habits.
Rossy also points out that the company has been operating in an environment of supply chain disruptions and inflationary pressures, and adds that the environment remains complex and volatile as we enter fiscal 2023.
- This report by The Canadian Press was first published in French on March 25, 2022
