Domestic suppliers increasingly pushing for price hikes: Dollarama CEO

Article contentDollarama Inc.’s chief executive has been raising his eyebrow at price increases several Canadian manufacturers and suppliers are pushing for.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“Certainly, domestic producers are being very, very, comfortable asking for price increases, when we’re not seeing the input costs going up on a lot of the products that those price increases are being asked for,” Neil Rossy told analysts on a call Thursday.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article content“It’s very hard to keep up with why they’re doing that other than wanting to make more profit.”Article contentArticle contentRossy’s remarks come as 2025 is winding to a close with U.S.

President Donald Trump’s tariff threats still looming large and trade uncertainty continuing to pressure Canada’s economy and beyond.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentTo help the country weather this geopolitical storm, many customers have tried to do their part by supporting more domestic brands.Article contentBut Rossy indicated the pricing these brands want him to impose on customers doesn’t always add up because by comparison, his company hasn’t seen many requests for increases on imported goods.Article content“For the imports, it’s much clearer (where price requests are coming from) because it’s all based on input costs and nothing more than that, not a strategy to make more money per se,” he said. “So it’s much easier to control and much easier to forecast.”Article contentRossy didn’t say how many requests from domestic producers have resulted in price hikes at his retailer but said several were “unavoidable.”Article contentHowever, chief financial officer Patrick Bui later mentioned that the company has “a lot of room to grow” within its $5 price cap and “there’s no reason for us to change that strategy.”Article contentArticle content“On the back of strong inflation, suppliers pushing costs or attempting to push costs that certainly puts added pressure on the unit costs,” he said on the same call as Rossy. “But overall, when you look at our results, and you look at the relative value deliver in the stores, I think we are able to fare fine.”Article contentThe results he was referring to show Dollarama’s third-quarter profit reached $321.7 million, up from $275.8 million a year earlier.Article contentIt amounted to $1.17 per diluted share for the quarter ended Nov. 2, up from 98 cents per diluted share a year earlier.Article contentSales for the period totalled $1.91 billion, up from $1.56 billion in the same quarter last year, boosted by the addition of 401 stores in Australia and growth in the number of Canadian stores.Article contentDollarama announced plans to buy Australian competitor the Reject Shop in March and has since been working to revamp the business. The company has been tinkering with the Reject Shop’s store layouts and has reviewed its merchandise. It plans to add Dollarama products to the brand’s shelves next year.Article contentMeanwhile, Dollarama continues to expand in Canada and its low costs mean the company has been reaping the benefits of customers being more price conscious.Trending CRA penalized taxpayer for repeated failure to report income Personal Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance 'Wild West out there': Cargo theft reports soar in Canada, but that's just the tip of the iceberg News The best mortgage rates in Canada right now Real Estate Article content“Amid economic uncertainty, the certainty of our low prices and year-round value keeps bringing consumers back,” Rossy said.Article contentDollarama’s comparable-store sales in Canada for the third quarter increased six per cent, including a 4.1 per cent increase in the number of transactions and a 1.9 per cent increase in average transaction size.Article contentIn its outlook, Dollarama said it expects Canadian same-store sales growth of 4.2 per cent to 4.7 per cent for its 2026 financial year, up from earlier guidance of between three per cent and four per cent.Article contentIt predicts Canadian gross margins between 45 per cent and 45.5 per cent, up from between 44.2 per cent and 45.2 per cent. Canadian capital expenditures will likely total between $240 million and $285 million, compared with earlier guidance for between $285 million and $330 million.Article contentThis report by The Canadian Press was first published Dec. 11, 2025.Article contentCompanies in this story: (TSX:DOL)Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA penalized taxpayer for repeated failure to report income Personal Finance This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance 'Wild West out there': Cargo theft reports soar in Canada, but that's just the tip of the iceberg News The best mortgage rates in Canada right now Real Estate