TMR-based Dollarama posts strong financial report despite COVID

Dollarama's head office in TMR.

The popular store Dollarama, whose head office is in Town of Mount Royal, reported strong financial results for its fiscal year ending Jan. 31, 2021, notwithstanding the ongoing COVID-19 pandemic and the virus's negative effect on many businesses.

As well, for a time late last year and early this year, stores with various products like Dollarama and Walmart were prohibited from selling items the Quebec government deemed non-essential, resulting in closed-off aisles and, in some stores, danger-zone-like tape placed over the prohibited items.

"In Fiscal 2021, we achieved solid results in a truly unprecedented year, which reconfirmed the resilience of our business model and the relevance of our offering to Canadians from all walks of life," stated Neil Rossy, Dollarama's President and CEO. "Our store teams and business leaders came together quickly to implement new operating procedures to protect customers and staff in order to provide Canadians with convenient and affordable access to everyday essentials throughout the pandemic."

Some of the highlights of the company's latest report.

• Sales growth of 6.3 percent for all of Fiscal Year 2021 to more than $4 billion, compared to 6.7 percent and $3.7 billion the year before.

• Comparable store sales growth of 3.2 percent.

• Gross margin of 43.8 percent of sales, compared to 43.6 percent the previous period and the opening of 65 net new stores, compared to 66.

• Long-term plans to have 2,000 locations by 2031. There are now 1,356.

Rossy pointed out that while the fourth quarter is usually the peak sales period of the year, "our strong sales momentum was interrupted by the introduction of more stringent public health measures in several provinces in the month of December.

"These stricter measures resulted in an abrupt and sustained decline in store traffic and sales through to fiscal year-end. With such restrictions gradually lifted starting in February, strong sales momentum returned in Fiscal 2022 and has remained quarter to date."

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