Dollarama profit rises as stores increase, customers spend more
By Manya Venkatesh
(Reuters) - Canadian dollar-store operator Dollarama Inc (DOL.TO: Quote) reported a 15 percent rise in quarterly profit as its number of stores increased and customers spent more per visit.
The company, which sells items priced up to C$3, said it expected positive same-store sales for the rest of the year despite increasing competition.
Dollarama's same-store sales rose 4.2 percent in the second quarter and its number of transactions increased 1.1 percent.
"We haven't seen any large structural changes around us from our competitors to lead us to believe we cannot continue to generate positive same-store sales," Dollarama's Chief Financial Officer Michael Ross told Reuters on Thursday.
Dollarama said the average spending by customers per trip rose 3.1 percent as the company sold more items priced higher than C$1.
Its number of stores increased to 917 as of Aug. 3 from 828, a year earlier. The company said it expected to open 70-80 more stores this year.
Even as dollar store chains in the United States look to consolidate, Dollarama said it had no plans to acquire rivals. Continued...