Dollarama Inc.’s food aisles have expanded beyond sweet treats and gum in recent years, but CEO Neil Rossy maintains that the company is “not in the grocery business” despite keeping an eye on the sector.
“It’s just one small part of our store,” Rossy told analysts, addressing questions about Dollarama’s food offerings and competition in the market.
While Dollarama has added items like bread, cereal, rice, and pasta to its food merchandise over the past decade to meet consumer demand for deals, the discount market has become more competitive. Canada’s largest grocery chain has launched No Name stores that offer prices 20 percent lower than competitors like No Frills.
Rossy dismissed the idea that Dollarama is a supermarket rival, emphasizing the wide variety of items the chain sells. He believes this diversity sets Dollarama apart, likening it to an old-fashioned convenience store.
Dollarama reported a second-quarter profit of $285.9 million, up from $245.8 million the previous year, with sales increasing by 7.4 percent. The company attributes its success to the broad range of products it offers.
Despite challenging economic conditions that have led consumers to prioritize essential purchases, Dollarama’s comparable store sales rose 4.7 percent. Analysts suggest that the trend of seeking value and focusing on necessities is driven by high prices and stagnant interest rates.
Rossy noted that even wealthier consumers are turning to Dollarama during tough economic times, as everyone looks for ways to save money. He emphasized the importance of catering to all types of shoppers, regardless of their economic status.
As economic conditions continue to impact consumer behavior, Dollarama remains focused on providing value and a diverse selection of products to meet the evolving needs of Canadian shoppers.
Could you please rewrite that sentence for me?
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