Dollarama’s Second Quarter Sales Surge: More Canadians Turning to Discount Stores Amid Rising Costs
Discount retailer Dollarama has reported a surge in both profit and sales for the second quarter, reflecting a growing trend of Canadians turning to discount stores as the cost of living continues to rise.
The company’s net earnings rose to $285.9 million, up from $245.8 million in the same period last year. Net sales also climbed 7.4% to $1.56 billion, further highlighting the shift towards budget-friendly shopping amid economic pressures.
Personal finance expert Barry Choi, based in Toronto, attributes this trend to economic uncertainty and high levels of consumer debt.
“Whenever there’s an economic downturn or record-high debt, discount stores see an increase in traffic,” Choi explained. “It’s no surprise—people tend to tighten their belts, and their first stop is often dollar stores.”
CTV News spoke with several shoppers outside a Dollarama store in Calgary, many of whom shared their strategies for managing rising expenses. Bonnie Stainbrook, for example, emphasized the importance of smart shopping.
“I’ve been collecting coupons and shopping wisely to make my food last longer,” she said. “I also shop more frequently in smaller amounts to avoid waste.”
Jenny Hoffos, who was purchasing cleaning supplies for her niece, appreciates the store’s value for money. “The prices are decent. Maybe the quality isn’t top-notch, but for things like cleaning products, it works,” Hoffos said.
Low-cost essentials, including grocery items like snacks, have also been in high demand. Eve, another shopper, buys treats for her daughter at Dollarama but pointed out that the store lacks fresh produce and other necessities. “For snacks, it’s great,” she noted.
Many shoppers expressed frustration with their shrinking budgets, citing high costs for housing, insurance, fuel, and food. “With the cost of living rising, wages just aren’t keeping up,” Eve added.
An Equifax report from the second quarter of 2024 revealed that consumer debt in Canada reached $2.5 trillion, a 4.2% increase over the previous year. While inflation has eased somewhat, Choi noted that prices remain stubbornly high due to the absence of deflation.
“We haven’t seen deflation in ages,” said Choi. “Canadians might be hoping for it, but it’s not the answer. They need to find other ways to cope.”
Choi also highlighted a rise in side hustles, with more Canadians finding alternative ways to generate income. “A few years ago, around 30% of people had a side gig. Now, it’s closer to 50% to 85%, which is a staggering shift.”
