Canadian retail giant Dollarama is projecting slower sales growth in the coming year as consumers grapple with high living costs and price pressures. In the last financial year, sales grew by 4.2%, down from 4.6% the previous year. For the next year, Dollarama expects sales to increase between 3% and 4%, potentially falling short of analyst expectations.
The company reported $7.2 billion in sales in 2025, up from $6.4 billion the year before. Profits rose to $3.2 billion from $2.89 billion, but the gross margin slightly decreased to 45% from 45.1%. Unfavorable weather conditions and reduced customer visits contributed to lower sales in the last quarter.
Retail analyst Bruce Winder notes that many retailers are adopting a cautious approach due to economic uncertainties, including inflation and geopolitical events. Despite the challenges, Dollarama remains a dominant player in the budget retail space, with sales crossing $7 billion.
Dollarama also expanded its footprint by opening 75 new stores in Canada and seven in Australia under the brand name the Reject Store. The company sources about 53% of its products from North American vendors and 47% from overseas.