Dollarama plans to development new logistics hub in Western Canada

Dollarama has entered into an agreement to acquire land in the Calgary region for $46.7 million, subject to customary closing purchase price adjustments, for the development of a new logistics hub.

The company plans to build a warehouse and second distribution centre to service stores in Western Canada after the closing of the transaction, which is anticipated in the fourth quarter of fiscal 2025 and subject to the satisfaction of customary closing conditions.

The new facility is expected to be operational by the end of calendar 2027. Dollarama said having a two-node logistics model will enable the company to optimize its warehousing and distribution operations and support its growth plans while generating cost savings.  

The construction of the logistics hub, excluding land acquisition costs, is currently expected to be approximately $450 million, to be disbursed over a three-year period. Such expenditures are expected to be mainly funded with cash flow from operating activities and is not expected to impact the company’s shareholder capital return strategy.

Net earnings for Dollarama increased by 5.6 per cent to $275.8 million, compared to $261.1 million in the third quarter of fiscal 2024.

“We are pleased with our financial results in the third quarter of fiscal 2025, with solid same store sales growth in the context of continued normalization and cautious consumer spending,” said Neil Rossy, president and CEO. “Our performance demonstrates the enduring relevance of our business model for consumers from coast to coast.

“In light of the positive customer response to our value proposition year after year and following a re‑evaluation of our market potential in Canada, we are increasing our long-term target from 2,000 stores by 2031 to 2,200 stores by 2034. We are also setting in motion plans for a future logistics hub in Western Canada, in complement to our currently centralized logistics operations in the Montreal area, to support our growth and optimize our logistics for the long term.”