Canada: Dollarcity to Strongly Increase Number of Stores in Latin America by 2031
- DRC Discount Retail Consulting GmbH
- 2 days ago
- 2 min read
Discount Variety Retail Chain Dollarcity sees Latin America as a key market for the expansion of its retail stores.
As part of the presentation of results for the second quarter of 2025, Dollarama, owners of Dollarcity in Colombia and other Latin American countries, announced the progress in its financial performance and presented the guidelines of its expansion strategy for the next six years.
Dollarcity reported that, in the last twelve months, it achieved revenues of 6,700 million Canadian dollars, which represented a 9.5% growth in its total sales. For comparable stores in Canada, the increase was 4.5%. For its part, EBITDA stood at 2,300 million Canadian dollars, equivalent to 34% of sales, while free cash flow generation totaled 800 million. These figures, according to the company, consolidate a solid financial position that will allow it to execute a far-reaching expansion plan.
With these results, according to the company, they give the ability to maintain an ambitious growth plan and consolidate the company as an international benchmark in low-cost retail, in which the importance of offering value to consumers and generating consistent returns to shareholders was also highlighted.
What would Dollarcity's expansion process in Latin America be like?
The strategic objectives include the opening of 2,200 new stores in Canada by 2034, as well as the strengthening of Dollarcity's operation in Latin America. In this region, the goal is to reach 1,050 stores by 2031, a projection higher than the initially set of 850 stores by 2029.
The adjustment, they explained, responds to the dynamism registered in markets such as Colombia and Peru, countries in which Dollarcity began operations in 2017 and 2021, respectively.
Currently, Dollarama has a presence in seven countries and operates 2,718 stores, of which 658 correspond to the Dollarcity brand in Latin America. In June 2025, it opened its first point of sale in Mexico, which marks a relevant step in the consolidation of its regional strategy.
Colombia is positioned as the company's most representative market in the region. Of Dollarcity's 658 active stores in Latin America, 384 are located in Colombia, that is, about 59% of the total. This figure reflects the importance of the country within the company's growth plans and its potential as an engine of expansion on the continent.
Dollarama's strategy also includes strengthening its logistics network. To this end, it is advancing in the development of a decentralized storage model that combines its own centers and operations with third parties (3PLs). The company assured that this modality will optimize costs and maintain a balanced supply between its international suppliers and local producers in each country.
At the same time, the multinational has launched initiatives in the field of sustainability. Notable advances include human rights-related risk management, ongoing decarbonization projects, and recognition in international assessments. According to the information disclosed, Dollarama obtained a "low risk" rating from Sustainalytics and an AA rating on the MSCI indices, reinforcing its commitment to environmental, social and governance (ESG) criteria.
