Dollarama well-stocked for holidays despite supply chain, inflation woes
Global News
"We entered the fourth quarter in a solid inventory position with well-stocked stores ahead of the important holiday season,'' Dollarama CEO Neil Rossy said in a conference call.
Dollarama Inc. says it’s well-stocked for the busy holiday shopping period despite facing ongoing supply chain issues, inflationary pressure and a tight labour market across Canada.
“We entered the fourth quarter in a solid inventory position with well-stocked stores ahead of the important holiday season,” Dollarama president and CEO Neil Rossy told analysts during a conference call on Wednesday.
“This is despite the various headwinds which continue impacting the retail sector, namely supply chain pressures and cost inflation.”
The retailer beat estimates with its third-quarter profit on Wednesday, posting a profit of $183.4 million up from $161.9 million in the same quarter last year. The profit amounted to 61 cents per diluted share, up from 52 cents per diluted share a year earlier.
Rossy said the retailer’s financial performance in the quarter ended Oct. 31 represents a “return to a more normalized situation.”
“There were fewer restrictions in place, and no restrictions on the sale of goods or on specific retail channels,” he told analysts during a conference call.
The reduction in restrictions led to a shift in shopping habits, he said.
Customers shopped more often but bought less at one time – a reversal of the pandemic trend of shoppers stocking up but making fewer trips to the store.
