Dollarama Sales Surge 22% as Shoppers Flock to Lower-Cost Household Staples

Dollarama sales hit nearly $2 billion in its latest quarter amid the rising cost of living, as consumer purchases of household goods like groceries and toiletries helped increase sales by 22.2 percent.

The Canadian discount retailer reported $1.9 billion for the third quarter ending on Nov. 2, in contrast to $1.5 billion for the same timeframe last year, according to Dollarama’s financial results for the third quarter announced on Dec. 1.

Dollarama CEO Neil Rossy said the surge in sales was mainly fuelled by ongoing demand for “consumables,” which are everyday, non-durable goods that require frequent replacement. Products such as food, beverages, toiletries, and cleaning products are all included in the consumable category.

The demand for the company’s consumables was robust in the latest quarter, driven by a rise in foot traffic at retail locations as customers prioritize price value for essential items, particularly consumers with limited budgets seeking out cost-effective options, Rossy said.

“We continue to serve a fragile consumer,” Rossy said during an earnings call with investors. “Amid economic uncertainty, the certainty of our low prices and year-round value keeps bringing consumers back.”

The company’s net earnings rose by 16.6 percent, reaching $321.7 million, which led the company to adjust its initial forecast for fiscal 2026 to align with its performance so far this year and its expectations of “continued positive customer response” in the next quarter, according to an investors report.

“In an economic environment that has remained unpredictable, our business model continues to demonstrate its enduring relevance and resilience,” Rossy said in a press release.

Comparable store sales in Canada increased 6 percent, in contrast to the 3.3 percent gain observed in the previous year. This includes a 4.1 percent growth in transaction numbers and a 1.9 percent rise in the average transaction size.

Dollarama has expanded its presence by opening 19 new stores in Canada during this period, bringing the total to 1,684, the investors report said. The company anticipates reaching 2,200 stores in the country by 2034. 

It has also opened six new stores in Australia for a total of 401 stores, with plans to expand to 700 in the next eight years.

Sales may be up for Dollarama, but Empire, one of the largest traditional grocery chains in Canada, has reported a decline in profits compared to the same timeframe last year. Empire Co. Ltd. owns Sobey’s, IGA, Foodland, FreshCo, Farm Boy, Longo’s, and Thrifty Foods, as well as Lawtons Drugs.

Empire reported earnings of $159 million in its most recent quarter, down from $173 million in the same quarter of the previous year, the company said in its earning results released Dec. 11.

The organization reported its profit reached 69 cents per diluted share for the quarter ending on Nov. 1, compared to a profit of 73 cents per diluted share during the corresponding quarter last year. 

Food Affordability

The trends shown in the quarterly reports released by the companies reflect sentiment expressed by shoppers earlier this year in the Canadian Food Sentiment Index.

The survey by Dalhousie University’s Agri-Food Analytics Lab found that Canadians are increasingly anxious about food affordability and 42 percent of those surveyed identified cost as their top consideration when grocery shopping.

The increasing expense of food emerged as the primary concern for the majority of those surveyed, overshadowing worries related to the cost of housing, utilities, transportation, and child care. More than 84 percent of the roughly 3,000 participants identified food prices as the budgetary item that has risen the most in the past year.

The index also found that Canadians are not expecting much relief on their monthly grocery bills in the near future and are bracing for prices to continue to rise as the country’s trade war with the United States persists.

The 2026 edition of Canada’s Food Price Report has confirmed that consumer fears about rising food costs were accurate.

The Dec. 3 report is forecasting an average family of four in Canada can expect to pay an additional $994.63 for food next year compared to 2025, as overall grocery prices rise by roughly 4 to 6 percent.

The report also predicts meat prices will increase between 5 and 7 percent inflation, while vegetables prices are expected to increase by 3 to 5 percent; baked goods, dairy products, and eggs are projected to see a rise of 2 to 4 percent; fruit prices may increase by 1 to 3 percent, and seafood prices may rise by 1 to 2 percent.