In its earnings report on Wednesday, the Montreal-based retailer showed that cash-conscious consumers are eager for bargains. Dollarama’s sales have increased by almost 17 percent in the past year due to inflation.

Dollarama’s financial performance doesn’t seem to be due to customers spending more money on each visit, even though the chain announced last year that it would raise some items’ prices to $5.

In its last fiscal year, which ended on Jan. 29, the chain’s sales increased by 16.7 per cent to $5.05 billion. Net earnings per share grew from $2.18 last year to $2.76 in 2022. Same-store sales increased by 12 per cent.

As a result of strong profits, the company will increase its quarterly dividend to shareholders by 28 percent starting next month, to $0.0708. This indicates that the chain has been performing well despite the pandemic, as evidenced by its strong growth in sales, earnings, and same-store sales. The increase in dividend is a sign that the company is confident in its future and is rewarding shareholders for their continued support.

During the fourth quarter, the average transaction size only increased by 1.6%, but the number of transactions grew by over 14%. This is a sign the chain had more customers coming through its doors, whether they were loyal or new. 

Considering the rapidly rising food costs, Dollarama has begun to expand its food offerings, selecting items where it can maintain margins and minimize losses.