Dollarama says its sales rose 21.4 per cent in the first quarter compared to the same time last year, as more shoppers looked for affordable products amid rising living costs.
The company said consumer confidence appears to be weakening as Canadians continue to deal with higher prices for food, fuel and other everyday items. Same-store sales, which measure sales at existing locations, increased 5.6 per cent.
Dollarama’s growth was also helped by the opening of new stores in Canada and around the world.
The retailer warned that the ongoing war in Iran could increase costs if it continues for a long time. Higher fuel prices and supply chain disruptions could make it more expensive to move and sell products.
Dollarama says it expects strong sales to continue, but it may have to change its outlook if the conflict lasts longer and costs keep rising.
