With more than 1,700 stores across Canada and a customer base that reaches 96 per cent of Canadian households, Dollarama has become difficult for suppliers to ignore.
What was once viewed by some brands as a secondary retail channel has evolved into one of the country’s most broadly used retail platforms, offering national reach, frequent customer visits and access to consumers across virtually every income bracket.
According to Jeff Doucette, General Manager of Field Agent Canada, those realities are forcing suppliers to rethink how they approach the retailer.
“If Dollarama has the traffic, consumer packaged goods companies are going to want to be where that traffic is,” he said.
The comments follow the release of a Field Agent Canada study that found 96 per cent of Canadian households shopped at Dollarama within the previous 60 days. The research also found that the retailer’s appeal spans income levels, with household penetration ranging from 95 to 96 per cent regardless of household income.
Combined with a network of more than 1,700 stores and growing customer traffic, the findings suggest Dollarama’s importance extends far beyond the discount retail sector.
From Secondary Channel to Strategic Retail Platform
For many years, dollar stores were often viewed as a secondary channel for consumer brands, associated with closeout merchandise, excess inventory or limited product assortments.
Doucette believes that perception no longer reflects reality.
Today’s Dollarama provides access to a national customer base through stores located in major urban centres, suburban communities and smaller markets across the country. The retailer’s scale and frequency of visits have transformed it into a platform capable of delivering meaningful exposure for suppliers.
The shift is reflected in Dollarama’s operating performance. In its recently reported first quarter, the retailer recorded a 5.6 per cent increase in comparable store sales, driven by a 3.5 per cent increase in transactions and strong demand for consumables and general merchandise.
As traffic grows, suppliers are paying closer attention.
Brands Are Following the Traffic
Doucette pointed to several examples of national brands increasing their presence within the channel.
Large consumer packaged goods companies have expanded their involvement with Dollarama, while businesses outside traditional retail categories have also recognized the opportunity presented by the retailer’s customer base.
Bell’s Lucky Mobile and Virgin Plus brands, for example, have used Dollarama stores as distribution points for SIM cards and customer acquisition initiatives.
“For me, it legitimizes Dollarama as a retail channel if P&G is dedicating resources to it,” Doucette said.
The significance goes beyond individual partnerships.
For suppliers, Dollarama offers access to a retailer that continues to attract frequent visits from Canadian shoppers. Field Agent Canada’s research found that 37 per cent of consumers visited Dollarama more often in 2025 than they did the previous year, while only 13 per cent reported visiting less frequently.
That growing engagement has elevated Dollarama’s importance within many brand distribution strategies.
Solving for Dollarama
Doucette believes suppliers entering Canada or seeking broader national reach should carefully evaluate Dollarama’s role within the market.
“If I was looking to enter into Canada with my brand, I’d kind of try and figure out how I might solve for Dollarama and their 1,700 stores,” he said.
The retailer’s store network offers access to consumers across the country through a single retail relationship. For emerging brands, challenger brands or international companies entering Canada, that scale can be difficult to replicate elsewhere.
Success, however, requires more than simply securing shelf space.
Suppliers often need to adapt packaging, assortment and pricing strategies to fit Dollarama’s value-oriented retail model. Products that perform well in grocery, pharmacy or mass merchandise channels may require different formats to succeed within the retailer’s merchandising environment.
As a result, suppliers are increasingly examining how specific products and package sizes can be tailored to the channel without disrupting pricing or positioning across other retail partners.
Competition for Shelf Space Remains Intense
The opportunity Dollarama presents is significant, but shelf space remains highly competitive.
According to Field Agent Canada’s research, approximately 65 per cent of Dollarama’s assortment consists of private-label products, leaving a relatively limited amount of space available for national brands.
That reality increases the importance of differentiation. Brands seeking placement must demonstrate that they can strengthen category performance, enhance customer perception or contribute to traffic and basket size.
Doucette identified categories such as health and beauty, hygiene, cleaning products and confectionery as areas where suppliers may have opportunities to deepen their involvement.
Confectionery has proven particularly effective because recognizable brands and accessible price points help reinforce the retailer’s value proposition.
“They know that those items are the traffic drivers that are going to get people in the door or leave that lasting price impression,” he said.
A Growing Force in Canadian Retail
Dollarama’s role within the retail landscape has changed dramatically over the past decade.
The retailer has evolved beyond its traditional reputation as a destination for seasonal merchandise, party supplies and bargain hunting. Today, it competes for consumer spending across a growing range of everyday categories, from household essentials and snacks to beauty products and pantry items.
For suppliers, the implications are increasingly difficult to ignore.
Nearly every Canadian household shops at Dollarama. Millions of consumers visit its stores every month. Customer traffic continues to grow, and the retailer’s influence extends across income levels and geographic markets.
The question for suppliers is no longer whether Dollarama matters. The question is how they plan to participate in one of Canada’s most influential retail channels.
