Sept 16 (Reuters) – 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)
