What to know
- Dollarama reported a six per cent increase in comparable store sales in Canada during its fiscal third quarter, driven by higher foot traffic and slightly larger shopping baskets.
- Grocery prices rose 4.7 per cent year over year in November, according to Statistics Canada, with sharp spikes in beef and coffee contributing to the increase.
- Torontonians say Dollarama’s low, predictable pricing makes it a go-to for household essentials, small food items, and holiday shopping as budgets tighten.
More Canadians are leaning on Dollarama as the cost of living continues to rise, and the retailer’s latest financial results suggest that the shift is accelerating.
Dollarama reported a six per cent increase in comparable store sales in Canada during this year’s fiscal third quarter, nearly double the growth recorded during the same period last year.
The boost came from both increased foot traffic and slightly higher spending per visit, with transactions up 4.1 per cent and average basket size rising 1.9 per cent.
That shift comes as grocery prices continue to climb. According to Statistics Canada, food prices rose 4.7 per cent year over year in November, the largest increase since December 2023.
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On a monthly basis, grocery prices jumped 1.9 percent, marking the biggest month-over-month increase since January 2023. Fresh or frozen beef prices surged 17.7 per cent annually, while coffee prices spiked 27.8 per cent, driven by supply constraints, adverse weather and U.S. tariffs.
For many Toronto locals, Dollarama feels like one of the few places where prices remain predictable.
“Everything’s $5 and under,” one resident said, explaining why he was shopping there ahead of the holidays. “I’m actually about to buy Christmas decorations right now… it’s affordable, and this one’s big, there’s a lot of things in there.”
He also pointed to rising grocery costs in Dollarama itself. “Things were like $3 and below before, but now some things can be close to $5, and I’ve seen some things that are like $7.”
Another Toronto resident said grocery inflation has already reshaped their habits.
“I definitely think they’ve gone up. My bills at the grocery stores are much higher than they used to be,” she said. “I’m changing where I shop once in a while, especially if I’m just getting general products.”
One parent said discount retailers can help absorb some of that strain. She described Dollarama as “very affordable” and “definitely helpful for many people,” noting that she buys candy, chocolate, and other special treats for her daughter at the retailer because it’s “more convenient and more accessible.”
Reacting to rising food costs, she said, “It’s disheartening… food insecurity in the city, especially for children, should be a concern for more people.”
While others rely on Dollarama primarily for household essentials.
“It certainly is [more affordable], especially for last-minute kind of things that you need to pick up,” another resident said, pointing to items like soap, scented candles, and cleaning supplies.
Although he doesn’t stick to a strict budget, he said, “I look for the special stickers on everything.”
With grocery inflation reaching its highest level in nearly a year and Dollarama raising its full-year Canadian comparable sales forecast to as high as 4.7 per cent, as food prices climb, more Canadians are turning to discount retailers to stretch their dollars wherever they can.
