Dollarama Inc. is expanding faster than initially planned by increasing the number of new store openings this year to take advantage of a mall construction boom in Canada.
The discount retailer said it expects to open 65 to 70 net new stores for the fiscal year ending Jan. 31, 2013, up from an earlier guidance for 55 to 60 stores. Dollarama opened 52 net new locations last year.
"It seems we're getting more opportunities, there's more construction in Canada, more big boxes being built across Canada, particularly in Western Canada, but even in Ontario," CEO Larry Rossy said Wednesday.
However, Rossy could not say if the company would maintain the pace of adding new stores beyond the current year. The retailer has 735 locations across Canada, up 8.1 per cent from 680 stores a year ago. It added 14 net new stores in the quarter.
Dollar Tree Canada is growing its operations in Canada after purchasing 86 stores from Vancouver based Dollar Giant last year.
Dollarama grew its profits in the second quarter and beat analyst expectations for the 12th consecutive quarter as shoppers bought more items priced above $1 and the addition of 55 stores since last year helped drive sales.
The Montreal-based company earned $49.8 million or 66 cents per share for the 13 weeks ended July 29, up from $37.6 million or 50 cents per share in the comparable period last year. Analysts had forecast 64 cents per share in profits.
