Chief executive Neil Rossy said the platform is working in beta testing, though details such as delivery costs and the final selection of goods haven\u2019t been finalized.<\/p>\n
- \n
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\u201cWe are taking our time and doing lots of beta testing,\u201d Rossy told industry analysts on a conference call, adding the company might debut the concept in one or two provinces later this year to get customer feedback before rolling it out nationally by the end of 2018. \u201cWe are somewhat introducing a new concept, you know, built for Costco, in the concept of selling things by the case and not by the unit.\u201d<\/p>\n
Costco, which requires an annual paid membership in order to shop at its warehouses, began offering bulk restaurant and office supplies at its first business centre in Canada a year ago and offers a selection of its bulk supplies online from its business centre and standard warehouses.<\/p>\n
![\"\"](\"http:\/\/wpmedia.business.financialpost.com\/2018\/03\/dollarama.jpg?w=640&h=290\")
<\/p>\nDollarama sales rose 9.8 per cent.<\/p>\n<\/div>\n
Dollarama is a known haven for crafters who have been known to scour multiple locations to pick up bags of river rocks and mason jars. When announcing the bulk order strategy last year, the retailer\u2019s executives noted a segment of customers come to stores to fill large party supply orders.<\/p>\n
\u201cIt is really meant as a tool to address a customer base that isn\u2019t being satisfied in an intelligent useful way that need a higher quantity of our product without having to go store to store, whether that\u2019s a person with a party, or a dog groomer who has got a small business,\u201d Rossy said, noting items will be offered online based on practicality and cost.<\/p>\n
\u201cThere are certain items you simply can\u2019t ship in an e-commerce platform without it being cost prohibitive,\u201d he said. \u201cIf you are buying wine glasses at our store and you are hoping to buy 400 wine glasses on our e-com site, it\u2019s highly doubtful that will happen. Because the wine glasses, the way we bring them in for our retail operation, aren\u2019t built to handle drop tests for courier companies.\u201d<\/p>\n
The retailer announced Thursday that it will expand its Montreal-area distribution centre to 500,000 square feet in order to reach a target of 1,700 stores by 2027. The retailer, which operates 1,160 stores across Canada, opened 65 stores over the last year.<\/p>\n
\u201cThe website will open up a nice additional revenue stream for them,\u201d said Bruce Winder, partner in Toronto-based Retail Advisors Network, adding the move puts Dollarama in line to compete with bigger businesses like Costco and Walmart.<\/p>\n
\u201cRetailers know that there is a fairly large business-to-business market out there. When Costco opened originally, it catered mostly to a business customer before evolving into more of home consumer warehouse \u2014 that\u2019s why they are now opening up the business centres. Dollarama would have further revenue growth opportunities if they carry items that they don\u2019t offer in their stores.\u201d<\/p>\n
The news comes as Montreal-based Dollarama continues a sales and earnings streak, with net profit rising to $162.8 million, or $1.45 per share, in the period ended Jan. 29.<\/p>\n
That was up from $146.1 million, or $1.24 per share, in the same quarter a year ago and beat average analyst estimates of $1.40 per share, according to Thomson Reuters I\/B\/E\/S.<\/p>\n
Sales rose 9.8 per cent to $938.1 million, and same-store sales, a key bellwether of retail performance that strips out the effects of added year-over-year square footage increases, rose 5.5 per cent.<\/p>\n
Dollarama shares, which have risen 57 per cent in the last year, rose just under one per cent in afternoon trading Thursday.<\/p>\n
\u2022 Email: hshaw@nationalpost.com<\/a> | Twitter: HollieKShaw<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
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- Is Dollarama about to meet its match? Miniso, Japan\u2019s $2.99-store, plans to open 500 shops<\/a><\/li>\n