One of Canada’s largest dollar store chains is planning on expanding their presence, and with it, a hefty investment into providing logistics support for Western Canada just north of Calgary in Balzac.
Dollarama made the announcement of an agreement to acquire land in the Calgary region to build a Western Canada Logistics Hub on Dec. 4, in an earnings report.
The agreement was said to be for $46.7 million, subject to customary closing price adjustments, with a plan to spend a total of $450 million over a three year period to build the hub.
“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,” said Neil Rossy, President and CEO of Dollarama.
“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.”
The chain said that the increased interest in the number of stores in Canada came about as a result of increased confidence that the network of stores can be grown profitably.
Dollarama currently has 55 locations in Calgary.
