Like a university student flipping through study abroad brochures, Canadians' go-to dollar store has its eyes on the sunny shores of Australia.
Driving the news: Dollarama is buying Australian discount retailer the Reject Shop for $233 million, paying over double the brand’s market value. The Montréal retailer will look to turn around the hilariously named company’s fortunes after years of slumping sales.
- Dollarama plans on adding over 300 new Reject Shop locations across the country by 2034, nearly doubling the Melbourne retailer's current footprint.
- The expansion comes as the Canadian chain plans to boost its store count at home by almost 40% over the same time frame.
Why it matters: Dollarama’s retail formula has already made it the most valuable dollar store chain in North America. Given how similar the Australian and Canadian markets are, the company believes it can replicate its money-printing machine down under.
- There’s certainly room for growth. The Reject Shop has no direct competitor in the country, and there’s currently only one discount store per 52,000 people.
Big picture: Dollarama’s global ambitions keep growing. Last year, it upped its majority stake in Latin American chain Dollarcity, which is set to double its store count across Colombia, Peru, El Salvador, and Guatemala by 2030. It also plans to open its first locations in Mexico next year.—LA