Dollarama's Q3 profit rises, employees to receive pay bonus
Full-time and part-time staff will receive a bonus for their work during the pandemic, as the retailer raises its dividend
The Canadian Press
Photo by: Ted Brellisford, The Hamilton Spectator.
Dollarama Inc. said it would pay a bonus to its employees for their work during the pandemic as it raised its dividend and reported its third-quarter profit rose compared with a year ago.
The discount chain had come under fire earlier this year from employees and their supporters, who demanded that Dollarama enact greater health precautions in its warehouses and extend the pay raise it offered to employees at the start of the pandemic.
"I wish to recognize our people for their efforts and dedication as the pandemic has become our new reality and with COVID-19 safety measures now part of our everyday operating procedures," Dollarama president and CEO Neil Rossy said in a statement Wednesday morning.
Under this year's bonus program, full-time employees will receive $300, while part-time workers will receive $200.
The one-time payment comes as the retailer raised its quarterly dividend to 4.7 cents per share, up from 4.4 cents.
In March, Dollarama extended wage increases to its store and warehouse employees, but ended the pandemic pay program in August, a month and a half later than expected. Dollarama said in September that the wage increase cost the company roughly $11 million in its second quarter.
At a demonstration in August protesting the end of the pay raise, Dollarama employees described inconsistent adherence to health measures at company facilities and said it was not possible to maintain physical distancing inside its warehouses.
Discount stores such as Dollarama have fared well during the pandemic, as consumers spend less on discretionary items but continue to buy food and household essentials.
Dollarama earned $161.9 million or 52 cents per diluted share for the quarter ended Nov. 1, up from $138.6 million or 44 cents per diluted share in the same quarter last year.
Sales totalled $1.06 billion, up from $947.6 million in the same quarter last year, as shoppers reduced the frequency of store visits, but bought more when they did visit the stores.
Comparable store sales rose 7.1%, as the number of transactions fell 15.2%, but the average transaction size climbed 26.3%.