Over the past decade, Dollarama has expanded its food section to include staples like bread, cereal, rice, and pasta, often priced lower or on par with supermarkets. As consumers search for deals, this expansion has aligned with demand.
However, competition in the discount segment has increased, with Loblaw Cos. Ltd., Canada’s largest grocery chain, testing new ultra-discount No Name stores in Windsor, St. Catharines, and Brockville, Ontario.
These stores are positioned as 20 percent cheaper than other discount retailers, including No Frills, and achieve lower prices through smaller store footprints, limited chilled products, and an extensive offering of No Name merchandise.
Rossy dismissed suggestions that Dollarama is trying to compete with supermarkets but acknowledged that grocers are on his radar. “All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he noted.
Rossy declined to specify how much of Dollarama’s sales overlap with Loblaw or the food category in general. He emphasized that the variety of products Dollarama offers is its true strength, rather than just grocery items.