Dollarama has announced plans to increase its long-term Canadian store target to 2,200 locations by 2034.

The revised forecast marks a 10% increase from the discount retailer’s previous goal of 2,000 stores by 2031. This expansion reflects the company’s confidence in the enduring appeal of its value-driven business model, said Montreal-based Dollarama.

The chain currently operates 1,601 stores across Canada.

“Our performance demonstrates the enduring relevance of our business model for consumers from coast to coast,” said Neil Rossy, the company’s president and CEO in a news release accompany the chain’s third-quarter earnings report.

In the third quarter, Dollarama opened 18 net new stores, up from 16 a year earlier.

The company announced that it has entered into an agreement to purchase land in the Calgary region for $46.7 million to build a new logistics hub. Construction, excluding land acquisition costs, is expected to require $450 million in capital expenditures over three years, primarily funded through operating cash flow.

The hub, which will include a warehouse and a second distribution centre, is expected to be operational by the end of 2027. The Calgary facility will complement logistics operations currently centralized in Montreal.

Meanwhile, Dollarama reported that Dollarcity, its Latin American subsidiary, also saw continued growth during the third quarter. The chain opened 18 net new stores, bringing its total to 588 locations across Colombia, Guatemala, El Salvador, and Peru, up from 532 stores at the end of 2023.

With these initiatives, Dollarama is positioning itself for sustained growth in both Canada and international markets, said the company.

Canadian discount retailer Dollarama boosted its store count 5.4% over the past year.

Montreal-based Dollarama’s store total rose to 1,541 from 1,462 between October 2022 and October 2023, the company said Wednesday in a news release accompanying its quarterly earnings report. Dollarama opened 16 net new stores in the third quarter compared to 18 a year earlier.

The store-count increase drove Dollarama’s 14.6% rise in third-quarter sales to $1.48 billion from $1.29 billion in the corresponding period of the previous fiscal year.

The company’s jointly owned Dollarcity chain, which operates discount stores in Latin America, has also seen healthy increase in openings. During its third quarter, Dollarcity opened 22 net new locations compared to 18 a year earlier. Between December 2022 and September 2023, Dollarcity increased its store count 9% to 480 from 440.

Dollarama holds a 50.1% stake in Dollarcity. As of September 2023, Dollarcity had 287 locations in Colombia, 96 in Guatemala, 68 in El Salvador and 29 in Peru.

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