Dollarama Inc. says it is well stocked for the busy holiday shopping season despite lingering supply chain problems, inflationary pressures and a tight labor market across Canada.
âWe entered the fourth quarter with a strong inventory position with well-stocked stores ahead of the important holiday season,â Dollarama President and CEO Neil Rossy told analysts on a conference call. Wednesday.
“This is despite the various headwinds that continue to impact the retail industry, namely supply chain pressures and cost inflation.”
The retailer beat estimates with its third-quarter profit on Wednesday, posting a profit of $ 183.4 million from $ 161.9 million in the same quarter last year. Profit was 61 cents per diluted share, up from 52 cents per diluted share a year earlier.
Rossy said the retailer’s financial performance in the quarter ended Oct. 31 represented a “return to a more normalized situation.”
âThere were fewer restrictions in place and no restrictions on the sale of goods or on specific retail channels,â he told analysts on a conference call.
The reduction in restrictions has resulted in a change in shopping habits, he said.
Dollarama Reports Second Quarter Profit, Higher Sales Over Last Year
Customers shopped more often but bought less at a time – a reversal of the pandemic trend of shoppers to stock up but to make fewer trips to the store.
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Dollarama said the average transaction size fell 2.8 percent, but the number of transactions increased 3.7 percent.
Sales for the quarter totaled $ 1.12 billion, compared to $ 1.06 billion in the same quarter last year.
Meanwhile, despite continued inflation and logistical challenges, Rossy said Dollarama is avoiding price increases for now.
âThere are a number of strategies on the table to resolve the issue of inflation,â he said. âOne of those strategies is to add a new price. But at the moment, we have nothing to announce on the addition of a new price.
The retailer is also facing a tough job market across the country and has stepped up its usual hiring practices to attract workers.
âWe’ve put more effort into our HR initiatives for career fairs and other similar practices to help us get the attention we need to get the people we need,â he said. -he declares. âIt’s a bigger challenge than in the pastâ¦ it’s more difficult, there’s no doubt about it. “
Dollarama CFO JP Towner added that from a wages standpoint, the company has yet to see “significant wage increases” due to labor market issues.
Global News Morning Market and Business Report – September 9
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