Dollarama's same store sales jump 8.5%

Some retailers have had a rough time being successful in Canada, but not Dollarama, where profits, sales and store counts are on the increase.

In fact, customers increased their spending at the Canadian discounter over the fourth quarter, leading to thechain’s quarterly profit rising about 21%.

Same-store sales rose 8.5% in the fourth quarter, compared with 1.1% a year earlier. The company raised its dividend by 1 Canadian cent per share to 9 Canadian cents. Dollarama's net income rose to C$100.3 million ($80.2 million), or 76 Canadian cents per share, from C$83 million, or 59 Canadian cents per share. Revenue rose 14.9% to C$669.1 million.

Dollarama has been facing competition from Dollar Tree and Walmart as they expand in Canada. The retailer says it opened 27 stores in the fourth quarter and 81 stores in the year ended Feb. 1, taking its total store count to 955.

The company said average spending by customers per trip rose as sales from products priced higher than $1.25 increased to 71.5% during the fourth quarter from 61% a year earlier.

Dollarama said in a statement that it aims to provide customers with a consistent shopping experience, offering a broad assortment of everyday consumer products, general merchandise and seasonal items at select fixed price points up to C$3.