Dollarama Expanding into Mexico Market

Dollar Store Dollarama, Canada, Target the Mexican market for growth. Headquarters in Dollarama, Located in Montreal, Canada, It has 1,569 stores in Canada.

Dollarama is about to go through with the acquisition, Latin American retailer Dollarcity, An additional 10% of the stock,to increase its stake to 60.1%.

Dollarcity, which operates 547 stores in Latin America, plans to pilot its first store in Mexico in 2026. A few days ago, TJX, an American discount retailer, also formed a joint venture to expand its footprint south into Mexico. Neil Rossy, president and CEO of Dollarama, said: "Dollarcity will continue its role as a compelling long-term growth platform for Dollarama. Throughout our more than decade-long partnership, Dollarcity's leadership team has successfully executed its strategy." "Since we originally acquired a majority stake in 2019,

Dollarcity more than tripled its revenue and significantly increased its presence in key Latin American markets, demonstrating the underlying strength of its business model and the interest of Latin American consumers in our value proposition."

The founding shareholders of Dollarama and Dollarcity have agreed on governance terms that provide for future expansion of the business into Mexico. Shareholders will indirectly own 80.05% and 19.95% of the Mexican portion of the business, respectively. Dollarcity's 547 stores include 324 in Colombia, 99 in Guatemala, 72 in El Salvador and 52 in Peru. The retailer offers a wide selection of consumables, general merchandise and seasonal items at select fixed prices up to $4.00. After an updated assessment of the market potential,

Dollarcity's management has increased its long-term store target in these four current operating markets from 850 stores by 2029 to 1,050 stores by 2031.