A Dollarama store is seen Tuesday, June 11, 2013 in Montreal.THE CANADIAN PRESS/Paul Chiasson

Retailer Dollarama unfazed by arrival to Canada of China’s Miniso

Retailer Dollarama unfazed by arrival to Canada of China’s Miniso

MONTREAL — Dollarama Inc. says it’s not worried about the arrival to Canada and growth plans of Chinese dollar store chain Miniso.

“We consider them a pure China-based, Chinese import dollar store,” Dollarama CEO Neil Rossy said Wednesday during a conference call about its latest quarterly results.

“They do a very nice job in stores about one quarter to one third the size of ours.”

Miniso has opened six stores in British Columbia and hopes to reach up to 50 locations by the end of next year, including Ontario, Quebec and Alberta.

Overall, the firm hopes to have 6,000 stores around the world by 2020.

Rossy said Miniso’s merchandise is focused on “design-oriented non essentials” which is a different customer base than Dollarama. The Canadian retailer caters to many shoppers with a broad offering of food, kitchenware, party decorations, toys and seasonal goods.

“We will consider them as competition as we consider all the other retailers in Canada as competition. But there’s nothing for us to react to at this time.”

The Quebec-based discount retailer (TSX:DOL) said it earned $130.1 million of $1.15 per diluted share in its third quarter, up from $110.1 million or 92 cents per share a year ago when it had more shares outstanding.

Analysts on average had expected a profit of $1.11 per share, according to Thomson Reuters.

Sales in the 13 weeks ended Oct. 29 totalled $810.6 million, up from $738.7 million.

Comparable store sales grew 4.6 per cent as the average transaction size grew 4.5 per cent and the retailer saw a 0.1 per cent increase in the number of transactions.

Dollarama said it has no immediate plans to expand its price points beyond $4.

“We had 17-plus years to master $1, and it’s going to take us a bunch of years to master $3.50 and $4,” Rossy added.

The retailer also said it will likely wait for other retailers to hike prices in response to minimum wage increases before it follows suit.

“If they do, it gives us an option. And if they don’t, obviously, we must, like all the other retailers, find a way to fight a good fight and figure it out,” Rossy told analysts.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Curbside concerts to start this month in some Red Deer neighbourhoods

Red Deer Arts Council is organizing at least eight outdoor shows

46 new COVID-19 cases reported Wednesday in Alberta

Province has completed more than 500,000 COVID-19 tests

Red Deer RCMP downtown detachment to reopen front counter service

Police say new health protection measures will be in place

Two suspects arrested in connection to Parkland Mall shooting

Two suspects connected to the June 30 shooting at Parkland Mall have… Continue reading

High unemployment, $343B deficit projected in Liberals’ fiscal snapshot

Slow economic growth forecast until at least the end of 2021

Grizzly bears in the dark as they try to share living space with humans: study

Grizzly bears in the dark as they try to share living space with humans: study

‘You haunt my dreams:’ Sex assault victim confronts ex-nightclub worker in court

‘You haunt my dreams:’ Sex assault victim confronts ex-nightclub worker in court

Alberta bill proposes major changes to union strike rules and funding

Alberta bill proposes major changes to union strike rules and funding

Alberta air force base to use goats, sheep to chew down unwanted vegetation

Alberta air force base to use goats, sheep to chew down unwanted vegetation

Calgary officer justified in fatal shooting of man having mental crisis: ASIRT

Calgary officer justified in fatal shooting of man having mental crisis: ASIRT

Gave up seat for Kenney to run: Premier defends hiring ex-MLA for trade office

Gave up seat for Kenney to run: Premier defends hiring ex-MLA for trade office

Southern Alberta hailstorm caused almost $1.2B in damage: insurance bureau

Southern Alberta hailstorm caused almost $1.2B in damage: insurance bureau

Kanye West breaks with Trump, claims 2020 run is not a stunt

Kanye West breaks with Trump, claims 2020 run is not a stunt

Most Read