Dollarama to enter online market by end of year

According to Financial Post, Canada’s largest dollar store revealed on Thursday their “pending e-commerce rollout ... after posting better than expected fourth-quarter sales and profits.”

CEO Neil Rossy explained that Dollarama’s online platform is working so far in the beta stage, though details such as delivery cost and selection of goods remain scant.

“We are taking our time and doing lots of beta testing… [since] We 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” Rossy told industry analysts during a conference call.

Dollarama might introduce the concept on a small scale, starting in one or two provinces in the latter part of the year to get customer feedback before going country-wide.

Membership-based Costco began allowing the shipment of bulk restaurant and office supplies a year ago.

Dollarama feels they will be filling the demand for avid arts and crafts enthusiasts who have been known to visit multiple stores to find “bags of river rocks and mason jars.” The company also notes that a decent segment of their clientele trek to Dollarama stores to fill large party supply orders.

“‘It is really meant as a tool to address a customer base that isn’t being satisfied in an intelligent useful way that need a higher quantity of our product without having to go store to store, whether that’s a person with a party, or a dog groomer who has got a small business,’ Rossy said, noting items will be offered online based on practicality and cost.”

Retail analyst Bruce Winder says that “The website will open up a nice additional revenue stream for them” as they will be positioned to compete with Costco and Amazon.

Dollarama opened 65 new stores over the last year and continue an earnings streak; their sales rose 9.8% last quarter to $938.1 million.