Dollarama raises annual sales forecast in Canada as inflation-hit shoppers trade down

Sept 16 — Canada's Dollarama raised its annual ​comparable sales growth forecast on Wednesday, as shoppers facing mounting ‌inflationary pressures increasingly turn to its low-cost everyday ⁠products such ​as grocery and ⁠household items.

As consumers look for ‌ways to ‌stretch their budgets, many have shifted ⁠to cheaper ⁠alternatives across categories ranging from pantry staples to personal-care products, boosting traffic at dollar stores such as Dollarama, which sells merchandise at ‌price points of ​up to C$5.

The discount retailer expects annual comparable sales in Canada to grow between 4% and 4.5%, compared with its previous forecast of a 3% to 4% rise.

Dollarama, ​whose shares have fallen about ‌19% so ‌far ⁠this year, posted second-quarter sales of C$2.03 billion ($1.46 billion), largely in line with analysts' estimates, according to ‌data compiled by ​LSEG.

($1 = 1.3929 Canadian ‌dollars)

(Reporting by ⁠Shania ​S Thomas in Bengaluru; Editing by Shilpi ​Majumdar)

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