Whether the stock market is rising or waving sideways, I like to anchor part of my portfolio in some fundamentally strong shares that deliver the essence. For example, companies that retain people, not because they want it, but because they have to do that. And it is even better when such companies succeed in growing, expanding and improving the margins while they do this.
One discount shop, Dollarama (TSX: Dol), an expert in doing that exactly – and it doesn’t slide. Strong demand, smart shop growth and a sharp eye on the costs have helped to rise above the noise. In this article I will show you why Dollarama deserves its place on my list as a best consumer supply to buy, even when the economy starts to feel a bit shaky.
Why Dollarama could be the best consumer supply to buy
You have probably heard that Dollarama is one of the most trusted brands in the Canadian Discount Retail. Known for its fixed price model, the company runs more than 1,600 stores in Canada and offers a wide range of consumables, seasonal items and general merchandise at price points up to $ 5.
In the past year, DOG shares has risen by 43% to currently act at $ 187.34 per share with a market capitalization of $ 52.2 billion. But what is more impressive is the long -term run. The share was won more than 141% in three years and more than 286% in the last five.
Interesting is that the growth strategy of Dollarama has two main engines. The first is in Canada, where it opened 22 net new stores in the last quarter – the number of stores expanded to 1,638 locations. What is even more important, the company is planning to reach 2,200 stores by 2034 and has already built the systems and infrastructure to support that type of growth. It is even planning to support a new logistics hub in West -Canada to support its growing network.
The second growth motor is DollarCity, his Latin -American investment. Dollarama has a little more than a 60% interest in this fast -growing retailer, which operates 644 stores in Colombia, Guatemala, El Salvador and Peru. DollarCity achieved a turnover of 12.6% on an annual basis in the last quarter with the help of network expansion and higher margins of improved logistics.
Dollarama recently added a third pillar to its growth story with the completed acquisition From the biggest discount retailer in Australia, the rejecting store. This movement gives the foot on the ground in another growing market, which openes the door for international expansion that goes much further than Latin -America.
A resilient choice with space to grow
In the past two years, some retailers have struggled with tight consumer expenses and rising costs. Nevertheless, Dollarama shows how they can adapt and thrive, even in the midst of a difficult economic environment. The efficient cost structure, the flexible price model and Smart Sourcing strategies have helped to maintain strong profitability, even when the economy is unpredictable.
Whether it is Canadian shoppers who are looking for deals, new customers in Mexico or fresh opportunities in Australia, Dollarama is building a company that has the potential to continue to grow for decades. Given these solid basic principles, the long -term shares can yield excellent returns.
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