Dollarama : Annual Information Form (2026 Annual Information Form EN)
DOL.TO
Published on 04/21/2026 at 06:38 pm EDT
FOR THE FISCAL YEAR ENDED FEBRUARY 1, 2026 APRIL 14, 2026
CONTENTS
Explanatory Notes 1
Background 4
Corporate Structure 5
General Development of the Business 6
Business of the Corporation 9
Risk Factors 22
Description of Capital Structure 23
Dividends 25
Description of Material Indebtedness 26
Unless otherwise indicated, the information in this annual information form (the "Annual Information Form") is stated as at February 1, 2026, the last day of the Corporation's most recently completed fiscal year, and all dollar amounts are expressed in Canadian dollars.
The Corporation's fiscal year ends on the Sunday closest to January 31 and usually has 52 weeks. However, as is traditional with the retail calendar, every five or six years, a week is added to the fiscal year. Fiscal 2025 was comprised of 53 weeks. References to "Fiscal 2027" are to the Corporation's fiscal year ending January 31, 2027, to "Fiscal 2026" are to the Corporation's fiscal year ended February 1, 2026, to "Fiscal 2025" are to the Corporation's fiscal year ended February 2, 2025 and to "Fiscal 2024" are to the Corporation's fiscal year ended January 28, 2024.
Unless otherwise noted or required by the context, references to "Dollarama" or the "Corporation" refer to Dollarama Inc. and all of its subsidiaries, collectively, or to Dollarama Inc. and/or one or more of its subsidiaries, as applicable. Since the completion of its acquisition of The Reject Shop Limited (now Dollarama Australia Pty Limited, "Dollarama Australia") on July 21, 2025, the Corporation has two reportable segments: Canada and Australia.
This Annual Information Form contains certain forward-looking statements about current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or other future events or developments, including the Corporation's long-term store targets in Canada, Dollarama Australia's long-term store target in Australia, Dollarcity's long-term store target, the evaluation and implementation of strategies to optimize and deploy attributes of the Dollarama business model and its branding in Australia over the coming years (including the timing and costs associated therewith), the intended development of a logistics hub in Western Canada, and the Corporation's ESG strategy. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on information currently available to management and on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions and the competitive environment within the retail industry in Canada, Australia, and Latin America, in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including the following factors which are discussed in greater detail in the "Risk and Uncertainties" section of the Corporation's management's discussion and analysis for Fiscal 2026 ("Fiscal 2026 MD&A"): future increases in operating costs (including increases in statutory minimum wages), future increases in merchandise costs (including as a result of rising raw material costs and tariff disputes), future increases in shipping, transportation and other logistics costs (including as a result of freight costs, fuel price increases and detention costs), increase in the cost or a disruption in the flow of imported goods (including as a result of global supply chain disruptions and the geopolitical instability triggered by the increased tensions between China and the Western countries), inability to sustain assortment and replenishment of merchandise, failure to maintain brand image and reputation, inventory shrinkage, disruption of distribution infrastructure, inability to increase warehouse, distribution centre and logistics hubs capacity in a timely manner, inability to enter into or renew, as applicable, store and warehouse leases on favourable and competitive terms, seasonality, market acceptance of private brands, failure to protect trademarks and other proprietary rights, foreign operations (including international operations in Australia and, through the Corporation's equity accounted investments in Dollarcity, in El Salvador, Guatemala, Colombia, Peru, Mexico and Panama), foreign exchange rate fluctuations, potential losses associated with using derivative financial instruments, interest rate risk associated with variable rate indebtedness, level of indebtedness and inability to generate sufficient cash to service debt, any exercise by Dollarcity's founding stockholders of their put right, changes in creditworthiness and credit rating and the potential increase in the cost of capital, increases in taxes and changes in applicable tax laws or the interpretation thereof, competition
in the retail industry (including from online retailers), general economic conditions, competition from online retailers and growth of e-commerce, departure of senior executives, failure to attract and retain quality employees, disruption in information technology systems, inability to protect systems against cyber attacks, unsuccessful execution of the growth strategy (including failure to identify and develop new growth opportunities in Canada and internationally), the Corporation's inability to successfully integrate Dollarama Australia's business, any failure to realize anticipated benefits from the acquisition of Dollarama Australia, the holding company structure, adverse weather, earthquakes and other natural disasters, geopolitical events and political unrest in foreign countries, pandemic or epidemic outbreaks, unexpected costs associated with current insurance programs, regulatory environment, product liability claims and product recalls, class action lawsuits and other litigation, environmental compliance, climate change, and shareholder activism.
These factors are not intended to represent a complete list of the factors that could affect the Corporation's business or financial situation; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's financial performance and may not be appropriate for other purposes. Readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained herein are made as at the date of this Annual Information Form, and management has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
All of the forward-looking statements contained in this Annual Information Form are expressly qualified by this cautionary statement.
The Corporation's financial statements, available on SEDAR+ at https://www.sedarplus.ca, are prepared in accordance with generally accepted accounting principles ("GAAP") in Canada as set out in the CPA Canada Handbook - Accounting under Part I, which incorporates International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS Accounting Standards).
This Annual Information Form refers to EBITDA, a non-GAAP financial measure, and other supplementary financial measures, namely comparable store sales and gross margin. EBITDA represents net earnings plus income taxes, net financing costs and depreciation and amortization and includes the Corporation's share of net earnings of its equity-accounted investments. We believe it represents a useful supplemental metric to assess the operational profitability of the underlying core operations. Comparable store sales represents sales of stores, including relocated and expanded stores, open for at least 13 complete fiscal months, relative to the same period in the prior fiscal year. Gross margin represents gross profit divided by sales, expressed as a percentage of sales. We believe that these measures are important supplemental metrics of operating and financial performance because they eliminate items that have less bearing on our operating and financial performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on GAAP measures. We also believe that securities analysts, investors and other interested parties frequently use non-GAAP and other financial measures in the evaluation of issuers. Our management also uses non-GAAP and other financial measures in order to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets, and to assess our ability to meet our future debt service, capital expenditure and working capital requirements.
However, non-GAAP and other financial measures have important limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the Corporation's results as reported under GAAP. Reference is made to the section entitled "Non-GAAP and Other Financial Measures" of the Corporation's Fiscal 2026 MD&A, available on SEDAR+ at https://www.sedarplus.ca, for additional information on non-GAAP and other financial measures and for their reconciliation with the most directly comparable GAAP measure.
The market and industry data presented in this Annual Information Form has been obtained from a combination of internal company surveys, third-party information, including third-party websites, and
estimates of management. While those sources are believed to be reliable, they have not been independently verified, and management has no assurance that the information contained in third-party websites is current and up-to-date. While management is not aware of any misstatements regarding the market and industry data presented in this Annual Information Form, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under "Forward-Looking Statements" herein and under the "Risk and Uncertainties" section of the Corporation's Fiscal 2026 MD&A.
Founded in 1992 and headquartered in Montreal, Québec, Canada, Dollarama is a leading Canadian value retailer with international reach. Today, the Dollarama business model reaches customers through more than 2,800 conveniently located stores and over 43,000 people serving them in seven countries on three continents.
Over the years, a number of key initiatives have been introduced that have defined Dollarama's business model. These include (i) adopting a fixed price point retail concept; (ii) pursuing a store network expansion strategy leading to stronger brand awareness and increased sales; and (iii) implementing a program to directly source merchandise from overseas vendors, thereby reducing merchandise costs and diversifying and enhancing the product offering.
Canada remains Dollarama's core market, where the Corporation operates more than 1,700 stores, with a presence in all ten provinces and two territories. In addition to its Canadian operations, Dollarama has expanded internationally. In Australia, the Corporation operates through its newly acquired subsidiary Dollarama Australia (previously The Reject Shop Limited), which operates the discount retail chain, The Reject Shop, with a national network of over 400 stores. Dollarama is also present in Latin America through its equity accounted investments in Central American Retail Sourcing, Inc. ("CARS") and Inversiones Comerciales Mexicanas S.A. ("ICM", and together with CARS and their respective subsidiaries, the "Dollarcity Group" or "Dollarcity"). Dollarcity, in which Dollarama is the majority shareholder, operates more than 700 stores located in Colombia, El Salvador, Guatemala, Mexico and Peru. See "Business of the Corporation -Dollarcity".
In every market where it operates, either directly or indirectly, the Corporation aims to provide compelling value through select low fixed price points and convenient access to a wide assortment of affordable everyday and seasonal merchandise that appeals to a broad customer base.
Three generations of Rossy's grow a family business to 44-store variety chain in Quebec.
In 1992, Larry Rossy opens first Dollarama store selling items at $1.00 or less. The concept is a success.
Dollarama experiences rapid growth and by 2006, has 460 stores in all ten Canadian provinces.
In 2004, Bain Capital acquires majority stake in Dollarama.
In 2009, Dollarama introduces price points above $1.00 and completes initial public offering on the TSX.
By 2012, it has 700 stores and price points up to $3.00, further expanding its product offering.
Dollarama starts testing its concept outside Canada through Dollarcity, which has 15 stores in El Salvador.
By 2015, Dollarcity is also present in Guatemala.
1000th
DOLLARAMA
In 2015, Dollarama has 1,000 stores
Dollarama introduces price points up to $4.00 in 2016.
Dollarcity enters Colombia in 2017, pursuing further expansion.
By 2019, there are 1,300 Dollarama stores in Canada and 440 Dollarcity stores in LATAM.
Dollarama acquires a 50.1% equity stake in Dollarcity.
Dollarcity enters Peru in 2021.
In 2022, Dollarama introduces price points up to $5.00.
th
In 2023, Dollarama opens its 1500
th
store and Dollarcity its 500
In 2024, Dollarama increases Dollarcity ownership to 60.1% and expands partnership to Mexico.
In 2025, acquires The Reject Shop in Australia and Dollarcity opens its first store in Mexico.
The Corporation was incorporated under the Canada Business Corporations Act ("CBCA") by articles of incorporation dated October 20, 2004 under the name 4258401 Canada Inc. The Corporation's name was thereafter changed to Dollarama Capital Corporation pursuant to articles of amendment dated November 16, 2004. The Corporation's articles were further amended on December 20, 2006 to, among other things, create classes of common and preferred shares, and on September 8, 2009 to change its name to Dollarama Inc. Immediately preceding the closing of its initial public offering on October 16, 2009, the Corporation amalgamated with 4513631 Canada Inc., one of its holding corporations, under the CBCA pursuant to articles of amalgamation dated October 16, 2009. On September 11, 2014, Dollarama declared a share dividend (which had the same effect as a two-for-one share split of Dollarama's outstanding common shares), with Dollarama's common shares commencing trading on a split basis on November 18, 2014. On June 19, 2018, the Corporation's articles were amended to subdivide the number of common shares of the Corporation on a three-for-one basis.
The Corporation's head and registered office is located at 5805 Royalmount Ave., Montreal, Quebec, H4P 0A1. The Corporation's common shares trade on the Toronto Stock Exchange ("TSX") under the symbol "DOL".
The Corporation's principal subsidiaries, their jurisdiction of incorporation or formation and the Corporation's share ownership percentage in each as at February 1, 2026 are as follows:
Subsidiary
Jurisdiction of Incorporation or Formation
Ownership Percentage
Dollarama L.P.
Quebec
100%
Dollarama International Inc.
Canada
100%
Dollarama Australia Pty Limited
Australia
100%
Central American Retail Sourcing, Inc.
Panama
60.1%
Inversiones Comerciales Mexicanas S.A.
Panama
80.05%
Dollarama L.P. operates the chain of Dollarama stores in Canada and performs related logistical and administrative support activities.
Dollarama International Inc. ("Dollarama International") is the sole shareholder of Dollarama Australia, which operates stores under The Reject Shop banner in Australia.
Dollarama International further holds a 60.1% equity accounted investment in CARS, the parent company of entities operating Dollarcity stores located in El Salvador, Guatemala, Colombia and Peru. Dollarama International also holds a 80.05% equity accounted investment in ICM, the parent company of entities operating Dollarcity in Mexico. It continues to have joint control over Dollarcity (including CARS and ICM) and accounts for its investments as joint arrangements using the equity method.
Dollarama generated sales of $7.3 billion, net earnings of $1.3 billion and EBITDA1 of $2.4 billion in Fiscal 2026 on a consolidated basis.
In Fiscal 2026, Dollarama's Canadian segment generated sales of $6.8 billion. As at February 1, 2026, Dollarama operated 1,691 stores across Canada. Over the three most recently completed fiscal years, in Canada, Dollarama opened a total of 205 net new stores, expanded a total of 41 stores and relocated a total of 14 stores, representing in the aggregate an addition of 2,251,773 square feet to its retail network in Canada, or an increase of 14.6% since January 29, 2023.
As at February 1, 2026, Dollarama Australia operated a total of 402 stores across Australia. This represents an increase of seven net new stores opened since the closing of the TRS Transaction (as defined below). For the period from the completion of the TRS Transaction on July 21, 2025 to the end of Fiscal 2026, Dollarama Australia generated sales of A$497.2 million ($454.8 million).
Dollarcity operated a total of 732 stores across Colombia, Guatemala, Peru, El Salvador and Mexico as at December 31, 2025, and generated sales of US$1.5 billion ($2.1 billion) during its fiscal year ended December 31, 2025.
Highlights relating to the development of the Dollarama business over the three most recently completed fiscal years and for the current fiscal year are described below.
Offering of Fixed Rate Notes
On April 2, 2026, the Corporation issued two tranches of fixed rate senior unsecured notes due respectively on July 25, 2031 (the "3.940% Fixed Rate Notes") and April 2, 2036 (the "4.576% Fixed Rate Notes") by way of private placement in Canada. The 3.940% Fixed Rate Notes were issued at par for aggregate gross proceeds of $375.0 million and bear interest at a fixed rate of 3.940% per annum. The 4.576% Fixed Rate Notes were also issued at par for aggregate gross proceeds of $375.0 million and bear interest at a fixed rate of 4.576% per annum. The 3.940% Fixed Rate Notes and the 4.576% Fixed Rate Notes were assigned a rating of BBB (high) with a stable trend, by DBRS Limited. The Corporation will use the net proceeds of the offering to repay at maturity its $375.0 million aggregate principal amount of outstanding 1.871% fixed rate senior unsecured notes maturing on July 8, 2026, and to fund capital expenditure initiatives and for general corporate purposes. See "Description of Material Indebtedness - Senior Unsecured Notes" and "Ratings".
Quarterly Cash Dividend
On March 24, 2026, the Corporation announced that its board of directors (the "Board of Directors") approved a 13.4% increase of the quarterly cash dividend for holders of common shares, to $0.1200 per common share.
Acquisition of The Reject Shop Limited
On March 26, 2025, the Corporation entered into a definitive agreement to acquire all the issued and outstanding ordinary shares of The Reject Shop Limited (now Dollarama Australia) for A$233.6 million (the "TRS Transaction"). On July 21, 2025, the Corporation, through its wholly owned subsidiary Dollarama International, completed the TRS Transaction. This reflected a total consideration of A$6.68 per ordinary share, less A$0.77 per ordinary share to account for the fully franked dividend paid by The Reject Shop Limited prior to closing, resulting in a net cash consideration of A$5.91 per ordinary share.
1 EBITDA is a non-GAAP financial measure. Refer to the section entitled "Non-GAAP and Other Financial Measures" of the Corporation's Fiscal 2026 MD&A for the definition of this item and, where applicable, the reconciliation with the most directly comparable GAAP measure.
Renewal of Normal Course Issuer Bid
On July 3, 2025, the Corporation announced the renewal of its normal course issuer bid ("NCIB") and the approval from the TSX to repurchase up to 13,865,588 of its common shares, representing 5.0% of the issued and outstanding common shares of the Corporation as at June 30, 2025, during the 12-month period from July 7, 2025 to July 6, 2026 (the "2025-2026 NCIB"). As at February 1, 2026, the Corporation had repurchased a total of 4,465,281 common shares (including shares purchased to hedge the Corporation's exposure in respect of grants made under its performance share unit plan) under the 2025-2026 NCIB, at a weighted average price of $188.39 per common share, for a total cash consideration of $841.2 million, excluding the tax on share repurchases. See "Description of Capital Structure - Normal Course Issuer Bid".
Amendment and Restatement of Credit Agreement
On June 27, 2025, the Corporation entered into a Fourth Amended and Restated Credit Agreement with the lenders party thereto in order to, among other things, (i) extend the terms of its revolving credit facilities by one year so that the term now ends, for Facility A on June 27, 2030, for Facility B and Facility C, on June 27, 2028, and for Facility D, on June 26, 2026 and (ii) permit drawings under the Credit Agreement in Australian dollars with interest thereon calculated on the basis of the prevailing Australian Bank Bill Swap Reference Rate (plus the applicable margin). On December 22, 2025, the Corporation and Dollarama Australia entered into a Fifth Amended and Restated Credit Agreement (the "Credit Agreement") with the lenders party thereto in order to, among other things, (i) include a new Facility E, maturing on December 22, 2026, in the amount of A$75.0 million ($71.1 million) and (ii) add Dollarama Australia as a borrower for the purposes of Facility E. See "Description of Material Indebtedness - Credit Agreement".
Offering of Fixed Rate Notes
On June 16, 2025, the Corporation issued $600.0 million aggregate principal amount of fixed rate senior unsecured notes due December 16, 2030 (the "3.850% Fixed Rate Notes") by way of private placement in Canada. The 3.850% Fixed Rate Notes bear interest at a fixed rate of 3.850% per annum. The 3.850% Fixed Rate Notes were assigned a rating of BBB (high) with a stable trend, by DBRS Limited. The Corporation used the net proceeds of the offering to repay its $250.0 million aggregate principal amount of senior unsecured notes which matured on October 27, 2025, and for general corporate purposes. See "Description of Material Indebtedness - Senior Unsecured Notes" and "Ratings".
Acquisition of Land for Development of a Logistics Hub in Western Canada
On December 18, 2024, the Corporation acquired land in the Calgary, Alberta region for a total cash consideration of $46.7 million. The Corporation has since commenced the construction of a second distribution centre and warehouse, which is intended to service stores in Western Canada and is expected to be commissioned by the end of calendar 2027. See "Business of the Corporation - Warehousing and Distribution" and "Forward-Looking Statements".
New Long-term Dollarama Store Target in Canada
On December 4, 2024, following an updated evaluation of the market potential for Dollarama stores across Canada, management increased the Corporation's long-term store target in Canada to 2,200 stores by 2034, while maintaining an average new store capital payback period of approximately two years. This was an increase from Dollarama's previously disclosed long-term store target of 2,000 stores in Canada by 2031.
Factors taken into consideration and the assumptions relied upon in the establishment of the new long-term store target included the continued positive customer response to Dollarama's value proposition and the relevance of its business model, third-party analysis, the successful management of profit margins, actual and projected census and household income data, rates of per capita store penetration, historical and projected performance of comparable and new stores, the current real estate pipeline and the competitive retail, real estate, labour, economic and geopolitical conditions, and the absence of any significant change in such conditions. See "Forward-Looking Statements".
Amendments to the Credit Agreement
On June 28, 2024, the Corporation and the lenders party to the Third Amended and Restated Credit Agreement entered into a seventh amending agreement to the Third Amended and Restated Credit Agreement in order to, among other things, extend the terms of its revolving credit facilities by approximately one year so that the term now ends, for Facility A, on June 28, 2029, for Facility B and Facility C, on June 28, 2027, and for Facility D, on June 27, 2025. See "Description of Material Indebtedness - Credit Agreement".
Acquisition of Additional Equity Interest and Expansion of Partnership in Latin America
On June 11, 2024, the Corporation acquired, through Dollarama International, an additional 10.0% equity interest in CARS (the "Dollarcity Transaction"), thereby increasing its equity interest in CARS to 60.1%.
As part of the Dollarcity Transaction, Dollarama International and the Dollarcity founding stockholders established a new vehicle within the Dollarcity Group, ICM, the parent company of the entities that operate the Mexico portion of the business, in which the Corporation and the Dollarcity founding stockholders indirectly have a 80.05% and 19.95% equity interest, respectively. In addition, the parties agreed on updated governance terms providing for the future expansion of the business into Mexico.
In connection with the Dollarcity Transaction, the Corporation also secured an option to acquire, at any time on or before December 31, 2027, an additional 9.89% equity interest in CARS and a corresponding 4.945% equity interest in ICM. See "Business of the Corporation - Dollarcity".
Renewal of Related Party Lease Agreements
On April 3, 2024, the Corporation renewed its long-term lease agreements governing its head office and five of its warehouses, which are leased from entities related to the Corporation's Chief Executive Officer. See "Interest of Management and Others in Material Transactions".
Appointment of New Chief Financial Officer
Effective December 18, 2023, Patrick Bui was appointed as Chief Financial Officer of the Corporation. See
"Directors and Officers".
Private Offering of $500 Million Senior Unsecured Notes
On September 26, 2023, the Corporation issued $500.0 million aggregate principal amount of fixed rate senior unsecured notes due September 26, 2028 (the "5.533% Fixed Rate Notes") by way of private placement in Canada. The 5.533% Fixed Rate Notes bear interest at a fixed rate of 5.533% per annum. The Corporation used the net proceeds of the offering to repay, together with cash on hand, its $500.0 million aggregate principal amount of senior unsecured notes matured on November 6, 2023 and for general corporate purposes. See "Description of Material Indebtedness - Senior Unsecured Notes" and "Ratings".
Acquisition of Property Strategically Located Near Logistics Operations
On August 16, 2023, the Corporation completed the acquisition of an industrial property in the Town of Mount Royal, Quebec, for a total cash consideration of $88.1 million (taking into account closing price adjustments). See "Business of the Corporation - Warehousing and Distribution".
Amendments to the Credit Agreement
On July 5, 2023, the Corporation and the lenders party to the Third Amended and Restated Credit Agreement entered into a sixth amending agreement to the Third Amended and Restated Credit Agreement pursuant to which, among other things, the term of each facility was extended by one year so that the term now ends, for Facility A, on July 5, 2028, for Facility B and Facility C, on July 6, 2026, and for Facility D, on July 3, 2024. See "Description of Material Indebtedness - Credit Agreement".
Value retail is a well-established and growing segment of the retail industry. Consumer demand for value-oriented merchandise has grown substantially over the last decades and has been further supported in recent years by ongoing cost-conscious consumer behaviour. In Canada, this trend is reflected in the continued expansion of mass merchants, smaller value-priced chains, warehouse/club stores, discount food stores, close-out retailers and dollar stores. Management believes that the value retail segment will remain strong as consumers continue to look for convenience, proximity and value for everyday goods.
The value retail segment in which Dollarama operates is generally differentiated from other retail formats by one or more of the following characteristics: (i) low fixed price points; (ii) convenient store size and locations;
(iii) broad assortment of branded and unbranded merchandise, including everyday essentials and seasonal items; (iv) small or individual sized product quantities; and (v) streamlined self-service environment.
Merchandise offered generally includes essential categories such as home cleaning products, personal care items, over-the-counter pharmaceutical products, food, beverages, snacks, confectionery, pet food and pet accessories, as well as a broad range of general merchandise, including household wares, kitchenware, glassware, tableware, linens and towels, storage containers and accessories, home decor, seasonal and holiday items, books, stationery, greeting cards, giftware, party supplies, toys and games, arts and crafts materials, electronics, souvenirs, novelties, jewelry, clothing, footwear, headwear, costumes, hardware, garden tools, artificial flowers and other general merchandise.
The value retail segment in which Dollarama operates in Canada is also differentiated from the U.S. value retail segment, which generally relies more heavily on the sale of consumable products, including refrigerated goods.
The Corporation operated 1,691 stores in Canada as at February 1, 2026, including 75 net new stores opened during Fiscal 2026, and the Corporation is committed to growing its retail operations within the Canadian market towards a long-term store target of approximately 2,200 stores by 2034. See "Forward-Looking Statements".
In Canada, the Corporation's strategy is to grow overall sales and comparable store sales, EBITDA and cash flows by offering a compelling value proposition on a wide variety of merchandise to a broad base of customers.
Management believes that a number of operational advantages contribute to Dollarama's strong position in the Canadian value retail industry, including:
¬ the number, location and penetration of stores in new and existing markets, which increase brand recognition, generate word-of-mouth advertising and drive customer traffic;
¬ the core offering of consistently available products at compelling value, including a broad assortment of everyday necessities;
¬ the multi-price point strategy, which allows the Corporation to provide customers with a broad assortment of products at compelling value and to selectively adjust the selling price on certain items to address cost increases;
¬ the store size and consistent store format, which allows for an effective display of the broad assortment of merchandise and an efficient shopping experience for customers;
¬ the strong and long-standing vendor network, which enables the Corporation to update and diversify its product selection and rapidly respond to customers' changing needs, and to weather major disruptions;
¬ the volume of goods directly sourced from low-cost foreign vendors, which allows the Corporation to deliver a strong customer value proposition at attractive margins;
¬ the in-house product development expertise;
¬ the size, scale and efficiencies of warehousing and distribution operations;
¬ key technology-driven initiatives which enable the Corporation to be in a better in-stock position, to optimize in-store labour productivity, warehousing capacity and logistics efficiencies, and to generally maintain a streamlined cost structure as the business continues to grow; and
¬ the partnerships with leading third-party delivery platforms to bring additional convenience to customers looking to purchase products by the unit and have them delivered at their doorstep across Canada.
On July 21, 2025, the Corporation acquired, through Dollarama International, all the issued and outstanding shares of The Reject Shop Limited (now Dollarama Australia). As at February 1, 2026, Dollarama Australia operated a total of 402 stores across Australia, including seven net new stores opened since the closing of the TRS Transaction. The Corporation has a long-term store target of 700 stores in Australia by 2034. See "Forward-Looking Statements".
Since the completion of the TRS Transaction, the Corporation has continued to assess and started to implement initiatives aimed at optimizing operations and progressively deploying elements of the Dollarama business model at Dollarama Australia. These initiatives include the introduction of Dollarama-imported products, the refinement of the price-point strategy and the deployment of the Dollarama store layout, fixtures and shopping experience to customers. As part of this transformational phase, in support of optimizing store and logistics operations, the Corporation also expects to incur expenses and make investments related to the transformation of the IT infrastructure and the development of a long-term plan for the logistics network. The Corporation anticipates that the introduction of its brand in Australia will occur only once the stores reflect its value proposition.
Management believes that Australia offers attractive long-term growth potential for a value-oriented retail model, supported by favourable demographics and economic fundamentals in the region and a resilient retail sector. The discount and variety segment is diverse and competitive, with national discount department stores operating at scale alongside a broad range of fragmented smaller discount and variety retailers. While there is currently no significant presence of other large scale pure play competitors in Australia, the Corporation faces competition from mass merchants, specialty retailers and e-commerce platforms on factors including price, assortment and perceived value, and with other retailers for prime locations and the recruitment of qualified employees. See the "Risks and Uncertainties" sections of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations - International Operations and Strategy and Corporate Structure Risks - Growth Strategy).
Store Locations and Site Selection
As at February 1, 2026, the Corporation operated 1,691 Dollarama stores across Canada as detailed below.
Province / Territory
# Stores
Province / Territory
# Stores
Alberta
204
Nova Scotia
46
British Columbia
156
Ontario
656
Manitoba
58
Prince Edward Island
5
New Brunswick
48
Quebec
435
Newfoundland and Labrador
29
Saskatchewan
52
Northwest Territories
1
Yukon
1
As at February 1, 2026, Dollarama Australia operated 402 The Reject Shop stores across Australia as detailed below.
State / Territory
# Stores
State / Territory
# Stores
Australian Capital Territory
5
Tasmania
18
Queensland
85
Victoria
100
New South Wales
120
Western Australia
46
South Australia
28
The Corporation carefully selects its real estate locations with the goal of maximizing chain-wide store profitability and maintaining a disciplined, cost-sensitive approach to store site selection.
Potential store locations are evaluated by management based on a variety of criteria, including (i) the level of retail activity and traffic patterns; (ii) the presence or absence of competitors; (iii) the population and demographics of the area; (iv) the total rent and occupancy costs per square foot; and (v) the location of existing stores.
The Corporation opens stores in urban areas, satellite cities, suburban areas and rural towns which represented 25%, 30%, 26% and 19%, respectively, of the Corporation's Canadian store network at the end of Fiscal 2026. In Canada, 19% of stores are located in shopping malls, while and 81% are in non-mall locations. Management believes that stores attract customers from a relatively small shopping radius, which allows the Corporation to profitably operate multiple stores in all markets across Canada and to continue to profitably open stores in areas where existing store count and density are highest, such as in Ontario, Quebec and the Maritimes. Management also believes that the close proximity of stores to customers drives customer loyalty and frequency of visits.
New store openings are dependent upon, among other factors, management's ability to locate suitable sites and negotiate favourable lease terms. During Fiscal 2026 and Fiscal 2025, new Canadian store openings in Western Canada, Ontario, Québec and Maritimes represented 46%, 31%, 19% and 4%, respectively.
Store Leases
In Canada, the Corporation typically enters into leases with base terms of ten years, with options to renew thereafter for one or more additional periods of five years each. As of February 1, 2026, the average time to expiration of the Corporation's leases was approximately 5.2 years, based on management's estimates. As leases expire, management believes that it will be able to either obtain lease renewals as desired or obtain new leases for equivalent or better locations in the same general area. To date, the Corporation has not experienced difficulty in either renewing leases for existing locations or securing suitable leases for new stores. Management believes that this leasing strategy enhances flexibility to pursue various expansion and relocation opportunities resulting from changing market conditions. In Australia, store leases are generally signed with shorter terms than those in Canada and may include renewal options.
Store Relocations, Expansions and Closures
Stores are relocated from time to time, often within the same mall or complex, or are expanded, based on availability of real estate, to improve store performance or to capture other opportunities. An average of approximately $11.5 million was spent annually on the relocation or expansion of stores in Canada over the last five fiscal years. Store relocations decided by management are not considered store closures. Store closures are generally attributable to mall renovations, property redevelopment, natural disasters or expiry of the lease.
All of the Corporation's stores in Canada are leased from unaffiliated third parties, except for four stores that are owned by the Corporation and 16 stores that are leased from entities related to the Corporation's Chief Executive Officer (see "Interest of Management and Others in Material Transactions"). Similarly, all of Dollarama Australia's stores are leased. Management expects to continue to primarily lease locations as the store network expands.
Store Size and Condition
Dollarama offers a well-designed and convenient store format with a consistent merchandise offering, which makes it an attractive alternative to large discount and other large-box retail stores. Stores are well maintained and well stocked with a broad assortment of consumable products, general merchandise and seasonal items. See "Merchandise". The average store size in Canada has increased over the years from 5,272 square feet in 1998 to 10,455 square feet as at February 1, 2026 (of which generally between 80% and 85% is available selling square footage). In Australia, stores are generally smaller, averaging of 7,675 square feet.
Store Capital Expenditures
The Corporation's expansion model in Canada is generally characterized by a relatively low capital investment to open stores, a rapid sales increase after opening, consistent sales volumes and low ongoing
operating costs (including low maintenance capital expenditure requirements), which together result in an attractive return on investment.
The model for Dollarama stores in Canada has been effective in both rural and small communities as well as in more densely populated and metropolitan areas that typically include a larger number of competitors. In Canada, stores generally reach over $3.2 million in annual sales within the first two years of operation, compared to an annual store sale average in Canada of approximately $4.1 million as of February 1, 2026, and achieve an average capital payback period of approximately two years. A new Dollarama store in Canada generally requires an initial investment of approximately $1 million for capital expenditures and inventory, net of tenant allowance.
Management believes that the current store network in Canada is in good condition and does not require material maintenance capital expenditures. An average of approximately $14.3 million was spent annually on the maintenance of the Corporation's stores in Canada over the last five fiscal years.
Key transformational capital projects in stores in Canada over the last five fiscal years have included the following: (i) the roll-out of cameras in more than 1,200 stores to reduce shrinkage caused by theft; (ii) the redesign of the layout of certain stores to improve traffic flow at checkout and optimize merchandising space;
(iii) the installation of LED lighting in stores to improve energy efficiency; and (iv) the installation of centralized energy management systems for HVAC optimization.
In Australia, the opening of a new store requires estimated capital expenditures of between A$0.8 million to A$1.0 million per new store (between $0.8 and $1.0 million), and the renovation of an existing store to the Dollarama layout and fixtures requires estimated capital expenditures of between A$0.4 million to A$0.6 million (between $0.4 and $0.6 million). As at February 1, 2026, six stores featured Dollarama's store layout and fixtures, which enable higher product density and enhanced space utilization. The Corporation expects to incur additional capital expenditures while stores are progressively transitioning to this format over the coming years as part of the broader integration and optimization plan of Dollarama.
Store Operations
The Corporation has invested heavily in the past few years in its information technology infrastructure in Canadian stores, including network infrastructure, camera systems, self-check out and mobile capabilities. The Corporation's strategy is to continue leveraging this platform, including through the development of mobile applications, in order to improve operational control and standardization of processes across the chain, labour productivity, employee training, loss prevention and reporting.
Though Dollarama's model remains firmly rooted in brick-and-mortar operations, the Corporation has also developed an online presence over the last several years through partnerships with leading third-party delivery platforms in Canada, including Instacart, Uber Eats, Doordash and Skip, to enable customers to purchase products online by the unit and with fast delivery. As at February 1, 2026, approximately 1,600 of the Corporation's stores participated in two or more third-party delivery platforms. While customers have responded positively to the additional convenience provided by Dollarama's presence on such platforms, sales made through these delivery platforms remain non-material to the Corporation's overall sales.
Merchandise Mix
Dollarama offers a well-balanced targeted mix of merchandise at compelling values, including private-label and national brand products from leading manufacturers, which represent 65% and 35%, respectively, of Fiscal 2026 sales for the Canadian segment. Prices range from $0.25 to up to $5.00. The merchandise mix consists of:
¬ General merchandise, which represented approximately 38% of Fiscal 2026 sales (compared to 39% in the previous fiscal year), including party supplies, office supplies, arts and craft supplies, greeting cards and stationery, giftware, household wares, kitchenware, glassware, hardware, electronics, toys and apparel;
¬ Consumable products, which represented approximately 49% of Fiscal 2026 sales (compared to 48% in the previous fiscal year), including household consumables such as paper, plastics, foils, cleaning supplies, basic health and beauty care products, pet food, confectionery, drinks, snacks and other food products; and
¬ Seasonal items, which represented approximately 13% of Fiscal 2026 sales (same as the previous fiscal year), including Valentine's Day, St. Patrick's Day, Easter, Halloween and the winter holidays merchandise, along with seasonal summer and winter merchandise.
The Corporation's Australian segment also offers a wide range of private-label and national brand products. Merchandise sold at price points ranging between A$0.45 and A$15.00 represented over 90% of sales for the period from July 21, 2025 to February 1, 2026. For the same period, Dollarama Australia's merchandise mix consisted of: (i) general merchandise, which represented approximately 45% of sales; (ii) consumable products, which represented approximately 43% of sales; and (iii) seasonal items, which represented approximately 12% of sales. As part of the ongoing and projected initiatives and investments aimed at transforming the Australian business, the Corporation expects to deploy its value proposition through the continued phase-in of Dollarama-imported products, which will result in a gradual transition to lower-priced items and simplification of the price-point structure.
Stores carry a broad assortment of actively-managed stock keeping units ("SKUs", each a unique number used to identify a specific product). In Fiscal 2026, the assortment in Canada was comprised of approximately 5,000 active year-round SKUs and a number of active seasonal SKUs at any one time. The selection of items offered in stores at any one time varies, and Dollarama consistently refreshes its product offering. In Fiscal 2026, the Canadian refresh target was in the range of 25% to 35% of SKUs on an annual basis. Dollarama constantly adjusts the merchandise mix to offer a compelling value and a wide selection of products to its customers, as well as to optimize sales and maintain gross margins. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations -Merchandise Selection and Replenishment).
Merchandise Sourcing
The Corporation's sourcing strategy blends directly imported merchandise from overseas and products sourced from North American vendors. In Canada, the Corporation directly imports products from over 25 countries, with the vast majority of its imports originating from China. During Fiscal 2026, overseas direct imports accounted for 46% of total procurement volume in Canada, while 54% was procured from North American vendors. For the period from July 21, 2025 to February 1, 2026, imports in Australia represented 43% of total procurement volume and domestic purchases accounted for the remaining 57%.
Dollarama began developing direct relationships with overseas vendors in its early beginnings. Importing directly from overseas vendors was , and is still, viewed as an opportunity to gain competitive advantage on two main fronts: (i) offering products that were differentiated and more compelling, and (ii) building a low-cost platform that would give a sustainable long-term economic advantage. By dealing directly with overseas vendors, the Corporation develops product design, packaging and labelling concepts for private label brands, minimizes markups and overhead costs typically associated with intermediaries and importers and increases its bargaining power. This sourcing strategy also provides some flexibility to help mitigate inflation and currency fluctuations. Furthermore, it provides the Corporation with more visibility and control over safety and quality monitoring.
The Corporation purchases merchandise from a broad base of vendors, with the largest vendor accounting for approximately 6.2% of total purchases in Fiscal 2026 for the Canadian segment. For the same period, in Canada, the top ten vendors represented approximately 35% of total purchases and the top 25 vendors represented approximately 49% of total purchases.
The Corporation generally buys products on an order-by-order basis and does not enter into long-term purchase contracts or arrangements. When it does exceptionally enter into purchase contracts, the objective is to benefit from fixed prices over a specific term and not to be bound by minimum volume commitments. The Corporation benefits from strong and long-standing relationships with vendors, which, combined with the purchasing scale and direct sourcing capabilities, contribute to the Corporation's competitive cost position and ability to offer a wide selection of products at attractive, low-entry price points. See the "Risks and
Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations -
Imports and Supply Chain).
Over the years, Dollarama has developed a network of preferred and trusted vendors that meet high quality standards. To source its products, the Corporation relies on reputable vendors that hold the required certifications and comply with all applicable Canadian federal and, where relevant, provincial consumer product regulations and guidelines. These vendors are also expected to satisfy Dollarama's internal quality expectations and product specifications. While all products must meet Canadian regulations and Dollarama's specifications and standards, certain product categories carry higher risks in the event of non-compliance, as they may present health or safety-related hazards. Dollarama uses a risk-based approach to oversee product compliance for specific categories such as toys and other children's products, batteries and electronics, certain health and beauty products and accessories, food, medical devices, over-the-counter drugs and natural health products. Product categories are reviewed on a regular basis, taking into account evolving regulatory frameworks and industry practices, to build or enhance existing compliance programs.
When they become Dollarama vendors, vendors must also undertake to adhere to Dollarama's Vendor Code of Conduct, which outlines the Corporation's expectations regarding responsible business practices. Vendors are expected to comply with all applicable laws and regulations and to meet the standards of their industry, including the OECD Guidelines for Multinational Enterprises. This includes an obligation to assess and maintain the integrity of their respective supply chains, and to ensure that their contractors, authorized subcontractors, service providers, and any other entity that directly or indirectly provides goods or services that are used in the production of products sold to Dollarama operate in accordance with the standards articulated in the Vendor Code of Conduct.
Standards of engagement include specific expectations regarding (i) the quality and safety of the products sold to Dollarama, (ii) vendor workplace standards as well as (iii) vendor environmental and ethical business practices, including with respect to forced labour and child labour. These expectations are consistent with Dollarama's values, principles and policies and are used to assess and periodically monitor the practices of new and existing suppliers and their facilities. More information on Dollarama's responsible sourcing practices can be found in its most recent ESG report and its Report under the Fighting Against Forced Labour and Child Labour in Supply Chains Act, available for information purposes only on the Corporation's website at www.dollarama.com. Information in our ESG report and our Report under the Modern Slavery Act do not form part of, and are not incorporated by reference in, this Annual Information Form.
The Corporation's Canadian warehousing, distribution and logistics operations are located in the Montreal, Québec area. The tables below describe the Corporation's warehousing and distribution facilities, which consisted of seven warehouses and one distribution centre, as at February 1, 2026.
Warehouses
Size
Distribution Centre
Size
Dorval, Quebec
269,950 sq. ft
Town of Mount Royal, Quebec
*495,686 sq. ft
Lachine, Quebec
356,675 sq. ft
*Excluding the mezzanine
Lachine, Quebec
499,708 sq. ft
Laval, Quebec
512,156 sq. ft
Town of Mount Royal, Quebec
128,838 sq. ft
Town of Mount Royal, Quebec
325,000 sq. ft
Town of Mount Royal, Quebec
88,059 sq. ft
Total
2,180,386 sq. ft
The Corporation owns its distribution centre located in the Town of Mount Royal, Quebec (the "Montreal DC") and its approximately 500,000 square foot warehouse located in Lachine, Quebec. Except for the warehouse located in Laval, Quebec, which the Corporation leases from a third party, the other warehouses leased by the Corporation are leased from entities related to the Corporation's Chief Executive Officer pursuant to longterm lease agreements which were renewed on April 3, 2024. See "Interest of Management and Others in Material Transactions".
In Canada, the Corporation primarily uses its warehouses to store goods directly imported from overseas, and therefore warehouses a majority of its merchandise. Most goods sourced from North American vendors are delivered directly to its Montreal DC or, in some cases, directly to stores. The Corporation currently distributes a vast majority of its merchandise through the Montreal DC. A small portion of the Corporation's merchandise, including among other things greeting cards, chips and soft drinks, is shipped directly to stores by vendors.
Towards the end of Fiscal 2025, the Corporation acquired land in the Calgary, Alberta region, where it is building a warehouse and second distribution centre to service stores in Western Canada (the "Western Logistics Hub"). The Western Logistics Hub is expected to be operational by the end of calendar 2027. Having a two-node logistics model will enable the Corporation to optimize its warehousing and distribution operations, enhance flexibility and redundancy within its supply chain, and support its growth in Canada while generating cost efficiencies across its network. See "Forward-Looking Statements".
The industrial property acquired in Fiscal 2024 by the Corporation, strategically located near the Corporation's logistics operations in Montreal and adjacent to the Montreal DC, continues to provide optionality for potential future initiatives. While no development plans are currently in place, the property is being held to accommodate possible future needs related to optimization and modernization of the Corporation's logistics operations in the region.
The Australian operations are headquartered in Melbourne, Victoria and currently rely on a distribution network composed of three logistics hubs.
See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations - Distribution and Warehousing Network).
In Canada, the Corporation must constantly replenish depleted inventory through deliveries of merchandise to the Montreal DC, and from the Montreal DC to stores. Such process includes various means of transportation, including shipments by sea, mainly from Asia to the port of Vancouver, by train, from Vancouver to Montreal and back, and by truck, to stores located in all ten provinces, the Yukon and the Northwest Territories. Once the Western Logistics Hub becomes operational, it is expected that stores across Western Canada which are currently serviced out of Montreal will be serviced out of Calgary.
The Corporation does not have its own transportation fleet and works in collaboration with third-party carriers and freight forwarders to move products as efficiently as possible, including through enhanced merchandise consolidation, cube optimization and fuel saving route-optimization initiatives and by increasing the amount of merchandise moved via rail instead of road where possible.
Transportation costs are subject to, among other things, fuel cost increases or surcharges and adverse weather events, and therefore fluctuate over time. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations - Imports and Supply Chain).
As at February 1, 2026, Dollarama's store employee count in Canada was approximately 27,400. Of these store employees, approximately 38% are full-time employees and 62% are part-time or occasional employees. Dollarama hires seasonal employees during busy seasons such as the winter holidays to better address peak periods. In Canada, Dollarama also employs over 685 head office and field management employees and approximately 270 warehouse and distribution centre employees, for a total of approximately 28,300 employees in Canada.
The majority of warehouse and distribution centre staffing needs are outsourced to well-established third-party agencies in order to meet the unique and fluctuating staffing requirements of the Corporation's unautomated logistics operations. In Canada, those employment opportunities represent between 3.5% and 5% of the Corporation's total Canadian workforce requirements, depending on volume and seasonality. The
agencies with whom the Corporation works in Canada have been diligently selected and must abide by Dollarama's Vendor Code of Conduct, which sets our expectations regarding workplace standards and compliance with all applicable labour laws and regulations. In Québec, the Corporation verifies annually that employment agencies with which it works hold the required permits from the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST). In compliance with the requirements of the Quebec Act respecting labour standards prohibiting wage disparities, the Corporation maintains pay parity between employees and agency workers doing the same work in its distribution centre and warehouses. The Corporation is committed to providing a safe and efficient work environment for all workers, whether Dollarama employees or agency workers, through consistent operating routines and by considering health and safety in every activity. Moreover, Dollarama's whistleblowing and grievance mechanisms are available and communicated to all workers in its facilities, regardless of their status, and all are encouraged to report any issues or concerns confidentially.
As at February 1, 2026, Dollarama Australia employed approximately 220 corporate employees, approximately 5,500 stores employees and approximately 70 logistics employees, for a total of approximately 5,800 employees in Australia. A significant portion of Dollarama Australia's store employees are covered by an enterprise agreement, namely The Reject Shop Agreement 2023, and relevant applicable law. None of Dollarama's employees in Canada are party to a collective bargaining agreement or represented by a labour union. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Human Resources Risks - Recruitment, Retention and Management of Quality Employees).
Dollarama customers seek value and convenience and the product offering appeals to all demographics and income ranges. Customers shop at Dollarama to fulfill various levels of basic needs, either as a stand-alone shopping destination or for impulse purchases.
Through the Corporation's partnerships with third-party delivery platforms, customers in Canada can purchase products online from approximately 1,600 stores and have them delivered to their doorstep (see "Digital Initiatives"). See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Market Risks - E-Commerce and Disruptive Technologies).
The Corporation has generated rapid growth without significant expenditures on marketing and promotions. Management believes that this is primarily due to the strong brand name and success at selecting store locations with high traffic and ease of accessibility. Given the everyday fixed low price points model, there are generally no sales or markdowns to advertise. Dollarama employs practically no traditional advertising in Canada but, from time to time, leverages partnerships and social media channels to promote its brand and support recruitment.
The Canadian dollar store industry is highly fragmented with many privately-owned multi-outlet chains as well as independently operated dollar stores. In addition to Dollarama, the largest multi-outlet dollar store chains include Dollar Tree Canada, Your Dollar Store With More, Great Canadian Dollar Store and Buck or Two Plus!, all of which are franchise operations except Dollar Tree Canada. The Corporation estimates that these four pure play competitors operated a total of approximately 500 stores in Canada as at February 1, 2026.
In Canada, in addition to the competition from dollar stores, the Corporation faces competition to an even greater extent from variety and discount stores, convenience stores and mass merchants, many of which operate stores in the areas where Dollarama operates, offer products substantially similar to those offered by Dollarama and engage in extensive advertising and marketing efforts.
Moreover, as a result of Dollarama's broad product offering, the Corporation faces competition from various specialty retailers, including in the stationery, hardware, household ware, health and beauty, and arts and
crafts categories, whose product offerings overlap with a subset of Dollarama's product offering. Additionally, the Corporation competes with local, national and international online retailers.
Management monitors competition from all sources, including online, to ensure that the Corporation's product offering, in terms of variety, quality and pricing, remains compelling for consumers. Although the Corporation has noticed increased competition from large online retailers and marketplaces, current online competition has not posed a significant threat to the Corporation's business to date, as Dollarama's value proposition is strongly anchored in proximity and convenience. The Corporation continues to monitor evolving retail trends and to implement initiatives to address consumers' evolving needs and preferences. The Corporation's partnerships with leading third-party delivery platforms are examples of such initiatives.
Additionally, the Corporation competes with a number of companies for prime retail site locations and for the recruitment of qualified employees. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Market Risks - Retail Competition).
The Corporation's sales in Canada generally increase ahead of major holidays but otherwise experience limited seasonal fluctuations. Sales seasonality tends to be more pronounced in Australia due to the overlap of the summer period and the holiday season. Historically, the Corporation's lowest consolidated sales results have occurred during the first quarter whereas the highest consolidated sales results have occurred during the fourth quarter, with December representing the highest proportion of sales. Consequently, the Corporation generally purchases substantial amounts of inventory in the third quarter and incurs higher shipping and payroll costs in anticipation of the increased sales activity during the fourth quarter. Also, it carries merchandise during the fourth quarter that it does not carry during the rest of the year in Canada, such as gift sets, holiday decorations, certain baking items, and a broader assortment of toys and candy.
The quarterly results can also be affected by the timing of new store openings, the volume of sales contributed by new and existing stores, the timing of certain holidays and weather conditions. Furthermore, they can be affected by any event beyond the Corporation's control and causing disruption in its business activities or operations during a peak season. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Business Continuity Risks - Adverse Weather, Natural Disasters, Climate Change, Geopolitical Events, Wars and Acts of Terrorism, Pandemic and Epidemic Outbreaks).
The following table reflects the seasonality of sales and gross margin for each quarter of Fiscal 2026 for the Canadian segment, which is the segment that generates the majority of the Corporation's sales.
Fiscal 2026
(in % of total)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Sales
22.4%
25.0%
25.3%
27.3%
Gross Margin(1)
21.7%
25.0%
25.4%
27.9%
(1) Gross Margin is a supplementary financial measure. We refer the reader to the section entitled "Non-GAAP and Other Financial Measures" of the Corporation's Fiscal 2026 MD&A for additional information on this measure.
The Corporation relies on a portfolio of trademarks, the vast majority of which are registered trademarks, to protect certain aspects of its business. Trademarks are divided into two main categories, namely corporate trademarks under which the Corporation conducts its retail operations and product trademarks under which private label lines of products are presented. The Corporation seeks to protect its trademarks and proprietary rights as it deems appropriate in relevant jurisdictions. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations - Intellectual Property).
The Corporation is subject to a wide array of laws and regulations in multiple jurisdictions, including without limitation with respect to permits and licenses, product labelling, product safety, tariff measures, privacy safeguards, consumer protection, employment and labour matters and environmental laws. In recent years, Canadian federal and provincial governments have continued to update regulatory frameworks applicable to
retailers, including new and evolving requirements associated with extended producer responsibility regimes, environmental stewardship and eco-fee programs, and restrictions on certain single-use plastics and packaging materials. These evolving frameworks require ongoing monitoring and may result in additional compliance obligations for retailers operating across multiple jurisdictions such as the Corporation. The Corporation also works closely with Health Canada, the Canadian Food Inspection Agency, Environment and Climate Change Canada, Canada Border Services Agency and other federal and provincial regulatory authorities to monitor the compliance of its products and operations with all prescribed standards and regulations. As regulatory expectations continue to evolve, particularly in the areas of product safety, chemical substances, environmental reporting and waste management, the Corporation actively reviews and adjusts its internal compliance practices, documentation, and supplier requirements as needed. The Corporation strives to use best practices for the storage, physical safety and distribution of products and, when required, for the disposal of recalled products, and has adopted corresponding safety guidelines and recall procedures. In addition, the Corporation carries liability insurance to mitigate potential product liability claims. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Legal and Regulatory Risks).
In Canada, the Corporation has put in place a comprehensive cybersecurity program founded on the practices as defined in the National Institute of Standards and Technology (NIST) Cyber Security Framework
2.0. The main objective of the program is to align the Corporation's administrative, operational and technological controls to identify, assess, prevent, mitigate, detect and properly respond to cybersecurity threats, as well as ensuring timely recovery in case of a compromise. To achieve these objectives, the Corporation has dedicated information technology and information security resources and utilizes specialized third-party technology products and services. The Corporation's information systems are also monitored on a proactive basis by a security operations centre (SOC). The Corporation's payment environments subject to credit card data requirements are audited annually to validate compliance with the PCI-DSS standard, and regular cybersecurity maturity assessments are conducted by third parties.
Among other measures, the Corporation has implemented security controls such as penetration testing, incident response planning, and training and awareness programs for Canadian employees, executives and members of the Board of Directors, which include phishing simulations, tabletop exercises and other IT trainings and sessions. The Corporation's information technology architecture is built to be resilient, relying on redundant physical components to prevent material failures, redundant telecommunication links to prevent communication disruptions, and a synchronous disaster recovery site. However, given the increasing sophistication of cybersecurity threats, the inherent unpredictability of cyber incidents and the rising costs associated with remediation, such measures may not be entirely adequate or effective to prevent, identify or mitigate attacks by cyber criminals or breaches caused by employee error, malfeasance or other disruptions, which could result in damage in excess of any available insurance and materially adversely affect the Corporation's business and financial results. Furthermore, given the integration of the Corporation's systems with those of many third-party service providers, a cyber-incident suffered by them may also affect the Corporation. See the "Risks and Uncertainties" sections of the Corporation's Fiscal 2026 MD&A (Technology Risks).
The Corporation also leverages artificial intelligence (AI) technologies to enhance its business and operations, including to improve information and data analysis, document management and customer support. The Corporation's approach to artificial intelligence is designed to promote responsible deployment, human oversight, effective risk management, and compliance with applicable laws. Although the integration of artificial intelligence can provide operational benefits, it also introduces risks and challenges that may affect the Corporation's business. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Technology Risks).
The Corporation has a Cybersecurity Committee chaired by the Chief Information Officer and composed of representatives from various functions of the organization, including information technology, finance, legal affairs, human resources and the Corporation's privacy officer. This committee meets at least quarterly to review progress made on the Corporation's cybersecurity roadmap as well as major developments. From a governance standpoint, the Corporation's Audit Committee oversees emerging information technology risks
and cybersecurity risks, which include risks related to the use of artificial intelligence (AI). The Chief Information Officer delivers regular reports to the Audit Committee and to the Board of Directors.
The Corporation is deploying and gradually rolling out its information technology and cybersecurity infrastructure roadmap at Dollarama Australia.
The Corporation requires its business partners and service providers in Canada that collect or process the personal information of the Corporation's employees or customers to sign data protection addendums imposing security requirements that are aligned with applicable data protection laws and allow the Corporation to conduct audits of its outsourcers. Additionally, the Corporation's privacy policy (the "Privacy Policy") outlines the types of personal information the Corporation collects, when and how such information may be collected, how the Corporation uses personal information, and the measures the Corporation takes to ensure that the personal information collected is appropriately protected. The Corporation's privacy officer manages compliance, complaints and inquiries regarding the Privacy Policy, which is available for information purposes only on the Corporation's website at www.dollarama.com. Dollarama Australia has its own privacy policy, which can be found at www.rejectshop.com.au/information/privacy-policy.
Dollarama is committed to managing its operations and resources responsibly and serving its customers with purpose to create sustainable long-term value for all its stakeholders. The Board of Directors is the ultimate steward of ESG matters. The oversight of ESG risks and opportunities is formally embedded in the Board of Directors' mandate and in each of its committee charters.
The Management Committee, chaired by the President and Chief Executive Officer, is responsible for the development and implementation of the Corporation's ESG strategy in alignment with business priorities and which takes into account the interests of the Corporation's stakeholders. The Management Committee also reports to the Board of Directors and its committees on ESG and climate-related opportunities, risks, trends and regulations. The Management Committee is supported by the Corporation's ESG Steering Committee which implements and monitors various initiatives in support of the Corporation's ESG strategy. Both members of management and of the Board of Directors engage proactively with stakeholders on an ongoing basis to better understand their expectations regarding ESG matters.
All of the Corporation's reporting on ESG (which does not currently cover Dollarama Australia) and other related information is available on the Corporation's website at https://www.dollarama.com. The information on the Corporation's website does not form part of this Annual Information Form.
Dollarcity is a value retailer founded in 2009 and headquartered in Panama, which operates stores in Latin America. Dollarcity has been successful in adapting locally the value retail concept developed by Dollarama in Canada. The operations of Dollarcity in Latin America are jointly controlled by Dollarama International and the Dollarcity founding stockholders, through their respective ownership in CARS and ICM. The Corporation holds, through Dollarama International, a 60.1% equity accounted investment in CARS and a 80.05% equity accounted investment in ICM.
The Corporation initiated its business relationship with Dollarcity in 2013, under an agreement pursuant to which Dollarama International agreed to share its business expertise and to provide sourcing services to support Dollarcity's operations and future expansion in then agreed upon territories of El Salvador, Guatemala, Honduras, Costa Rica, Nicaragua, Panama, Colombia, Peru and Ecuador. Dollarama International continues to act as Dollarcity's primary product vendor, either as principal or as intermediary. The business relationship of Dollarama International and Dollarcity is primarily governed by sourcing, services and other agreements entered into between the parties. The sourcing and services agreements
each have an initial term of five years, subject to automatic renewal for successive one-year periods, unless terminated by either party at least 60 days before the close of the then-current term.
Under the sourcing agreements, Dollarcity purchases from the Corporation goods to be sold to customers in the normal course of business. Sales to Dollarcity that were shipped directly from the Corporation's warehouses, as well as the net consideration received for transactions in which the Corporation acts as an intermediary, are included in the Corporation's sales for the Canadian segment.
Pursuant to the services agreements and other agreements in place, Dollarcity and the Corporation provide services to each other, including, but not limited to, administrative and corporate services, as well as diverse information technology related matters. Dollarcity also purchases various items from the Corporation such as racking, hardware and software licenses.
In August 2019, the Corporation, through Dollarama International, completed its initial acquisition of an equity interest of 50.1% in CARS' equity. In June 2024, the Corporation completed the Dollarcity Transaction, thereby increasing its equity ownership in CARS to 60.1%.
In connection with the Dollarcity Transaction, Dollarama International and the Dollarcity founding stockholders established a new vehicle as part of the Dollarcity Group, ICM, the parent company of the entities that operate the Mexico portion of the Dollarcity business, in which the Corporation and the Dollarcity founding stockholders indirectly hold a 80.05% and 19.95% equity interest, respectively, and agreed on updated governance terms providing for the expansion of the business into Mexico. The Corporation also secured an option to acquire, at any time on or before December 31, 2027, an additional 9.89% equity interest in CARS and a corresponding 4.945% equity interest in ICM from Dollarcity's founding stockholders, who currently retain a 39.9% interest in CARS and a 19.95% interest in ICM.
The relationship between the parties is governed by a stockholders agreement entered into in August 2019 and as amended and restated in connection with the Dollarcity Transaction (the "Stockholders Agreement"), which provides for, among other things, certain specified strategic and operational decisions that are subject to the approval of all stockholders. These include, but are not limited to, decisions related to capital structure, nature of the business, merger and acquisition activities, executive officer appointments and remuneration, approval of annual budget and business plan, and any entry into a new country. As a result, Dollarcity is treated as an equity investee, and the Corporation is accounting for this investment as a joint arrangement using the equity method.
Under the terms of the Stockholders Agreement, Dollarcity's founding stockholders have a put right pursuant to which they can require, in certain circumstances, that Dollarama International purchase shares of CARS held by them at fair market value. This right may be exercised in the ordinary course by Dollarcity's founding stockholders during specified periods, subject to certain transaction size thresholds, required ownership thresholds and freeze and notice periods, among other conditions and restrictions. The put right may also be exercised upon the occurrence of certain extraordinary events, including a change in control of the Corporation and a sale of Dollarcity. Any exercise of the put right by the Dollarcity founding stockholders must include their corresponding proportionate interests in ICM. The Stockholders Agreement also includes drag-along and tag-along rights in respect of CARS and ICM. The Corporation cannot predict whether the put right will be exercised or, if exercised, when and to what extent it will be exercised (provided that, subject to limited exceptions, the put right can, prior to February 4, 2027, be exercised for up to 14.9% of all shares of CARS outstanding and the corresponding proportionate interests in ICM). In the event that the put is exercised, the consideration payable by the Corporation may, depending on various factors, including those discussed above, be paid using cash on hand or financed in full or in part and, depending on the circumstances, may temporarily impact the Corporation's capital allocation strategy. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Financial Risks - Liquidity).
Dollarcity's growth strategy in Latin America is aligned with Dollarama's. As at December 31, 2025, being
Dollarcity's fiscal year-end date, Dollarcity operated a total of 732 stores, including 415 in Colombia, 116 in
Guatemala, 105 in Peru, 85 in El Salvador and 11 in Mexico, representing an increase of 100 to the total of 632 stores operated by Dollarcity as at December 31, 2024. Dollarcity's management currently has a longterm store target of 1,050 Dollarcity stores by 2031, which contemplates stores in El Salvador, Guatemala, Colombia and Peru, but does not take into account Dollarcity stores in Mexico. See "Forward-Looking Statements". Dollarcity stores average 7,630 square feet and all but five stores are leased. A new Dollarcity store requires a minimal initial investment of approximately US$0.7 million ($1.0 million).
Dollarcity's logistics network relies on several national warehouses, which also act as distribution centres, in addition to an international warehouse located in a free trade zone in El Salvador. As at December 31, 2025, Dollarcity's corporate employee count was approximately 1,040, its store employee count was approximately 7,420, and its warehousing and distribution employee count was approximately 675, for a total of approximately 9,100 employees.
Dollarcity offers a wide range of private-label and national brand products. Merchandise is sold in individual or multiple units at select, fixed price points from US$0.69 up to US$4.00 (or the equivalent in local currency). For its fiscal year ended December 31, 2025, Dollarcity's merchandise mix consisted of: (i) general merchandise, which represented approximately 48% of sales; (ii) consumable products, which represented approximately 43% of sales; and (iii) seasonal items, which represented approximately 9% of sales. For the same period, imports represented 48% of the procurement volume and domestic purchases accounted for the remaining 52%. Dollarcity's sales in Latin America are seasonal, similarly to Canada, but with emphasis on local and international holidays rather than traditional weather-related seasonal patterns.
Dollarcity generated sales of US$1.5 billion ($2.1 billion) during its most recently completed fiscal year ended December 31, 2025. The Corporation's 60.1% share of net earnings from CARS and its 80.05% share of net loss from ICM amounted to $191.5 million for the period from January 1, 2025 to December 31, 2025.
Management believes that the value retail segment in Latin America offers attractive long-term growth potential for value retail, supported by favourable demographics and economic fundamentals. The region's retail market has continued to evolve, with a growing presence of global retailers and brands. While the value and discount segment remains fragmented in the countries where Dollarcity operates, Dollarcity competes with mass merchants, variety and discount stores, various speciality and online retailers and street vendors on factors such as price, assortment and merchandise quality. Dollarcity also competes with other companies for prime retail site locations and for the recruitment of qualified employees. See the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Risks Related to Business Operations - International Operations and Strategy and Corporate Structure Risks - Growth Strategy) and "Forward-Looking Statements".
The Corporation's risk factors are discussed in the Fiscal 2026 MD&A and are incorporated by reference in this document. The Fiscal 2026 MD&A is available on the Corporation's website (https://www.dollarama.com) and on SEDAR+ (https://www.sedarplus.ca). These risks may not be the only risks the Corporation faces. Other risks of which management is not aware or which are currently deemed to be immaterial may arise and have a material adverse impact on the Corporation, its business, results from operations and financial condition.
The authorized capital of the Corporation consists of an unlimited number of common shares and an unlimited number of preferred shares issuable in series. As at April 14, 2026, there were 272,241,115 common shares issued and outstanding (including 198,622 shares placed under the employee benefit plan trust by the Corporation to hedge its exposure in respect of grants made under its performance share unit plan) and no preferred shares were issued and outstanding.
The summary below of the rights, privileges, restrictions and conditions attaching to the shares of the Corporation is subject to, and qualified by reference to, the Corporation's articles and by-laws, available on the Corporation's website at https://www.dollarama.com.
The holders of the common shares are entitled to one vote in respect of each common share held at all meetings of holders of shares, other than meetings at which only the holders of another class or series of shares are entitled to vote separately as a class or series. The holders of the common shares are entitled to receive any dividend declared by the Corporation in respect of the common shares, subject to the rights of the holders of other classes of shares. The holders of the common shares will be entitled to receive, subject to the rights of the holders of other classes of shares, the remaining property and assets of the Corporation available for distribution, after payment of liabilities, upon the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary.
The preferred shares are issuable at any time and from time to time in one or more series. The Board of Directors is authorized to fix, before any issuance, the number of, the consideration per share of, the designation of, and the provisions attaching to, the preferred shares of each series, which may include voting rights, the whole subject to the issuance of a certificate of amendment setting forth the designation and provisions attaching to the preferred shares of the series. The preferred shares of each series will rank on a parity with the preferred shares of every other series and will be entitled to preference over the common shares and any other shares ranking junior to the preferred shares with respect to payment of dividends and distribution of any property or assets in the event of the Corporation's liquidation, dissolution or winding-up, whether voluntary or involuntary. If any cumulative dividends (whether or not declared), non-cumulative dividends declared or amounts payable on a return of capital are not paid in full, the preferred shares of all series will participate rateably in accordance with the amounts that would be payable on such preferred shares if all such dividends were declared and paid in full or the sums that would be payable on such shares on the return of capital were paid in full, as the case may be.
On July 3, 2025, the Corporation announced the renewal of its normal course issuer bid and launched the 2025-2026 NCIB to repurchase, during the 12-month period from July 7, 2025 to July 6, 2026, up to 13,865,588 common shares, representing 5.0% of the issued and outstanding common shares as at the close of markets on June 30, 2025.
Since April 2024, common shares purchased under the Corporation's NCIBs are either cancelled or placed in the Corporation's employee benefit plan trust. The common shares purchased from time to time by the Corporation's employee benefit plan trust are used to hedge the Corporation's exposure in respect of grants made under its performance share unit plan, including to settle its obligations under such plan. Common shares purchased and placed under the employee benefit plan trust are counted towards the maximum number of securities that the Corporation was or is entitled to acquire under the applicable NCIB.
As at February 1, 2026, the Corporation had repurchased a total of 4,465,281 common shares (including shares purchased to hedge the Corporation's exposure in respect of grants made under its performance share unit plan) under the 2025-2026 NCIB, at a weighted average price of $188.39 per common share, for a total cash consideration of $841.2 million, excluding the tax on share repurchases.
Since the launch of the Corporation's inaugural normal course issuer bid in June 2012 up until March 24, 2026, the Corporation repurchased a total of 199,011,869 common shares (including shares purchased to settle grants made under the Corporations performance share unit plan or to hedge its exposure in respect thereof), at a weighted average price of $41.87 per common share, for a total cash consideration of $8.3 billion, excluding the tax on share repurchases.
NCIB
Period of Coverage
Number of Common Shares
Repurchased
Weighted Average Price per Common
Share
Value of Common
Shares Repurchased
2012-2013
June 15, 2012 to June 14, 2013
15,499,584
$10.06
$155.9 million
2013-2014(1)
June 17, 2013 to June 16, 2014
39,988,128
$13.82
$552.8 million
2014-2015
June 17, 2014 to June 16, 2015
14,051,574
$18.91
$265.7 million
2015-2016(2)
June 17, 2015 to June 16, 2016
28,685,733
$28.58
$820.0 million
2016-2017
June 17, 2016 to June 16, 2017
17,925,486
$33.59
$602.2 million
2017-2018
June 19, 2017 to June 18, 2018
14,061,366
$47.89
$673.4 million
2018-2019(3)
June 20, 2018 to June 19, 2019
12,980,884
$37.88
$491.7 million
2019-2020
July 5, 2019 to July 4, 2020
7,089,040
$46.15
$327.1 million
2020-2021
July 7, 2020 to July 6, 2021
7,807,079
$56.46
$440.8 million
2021-2022
July 7, 2021 to July 6, 2022
16,227,177
$62.84
$1,019.7 million
2022-2023
July 7, 2022 to July 6, 2023
6,791,075
$82.10
$557.6 million
2023-2024(4)
July 7, 2023 to July 6, 2024
8,284,093(5)
$104.54
$866.0 million
2024-2025
July 7, 2024 to July 6, 2025
5,155,369(6)
$139.42
$718.7 million
2025-2026
July 7, 2025 to March 24, 2026(7)
4,465,281(6)
$188.39
$841.2 million
Total
199,011,869
$41.87
$8,332.8 million
(1) As amended on January 22, 2014.
(2) As amended successively on December 9, 2015 and March 30, 2016.
(3) As amended on December 5, 2018.
(4) As amended on April 3, 2024.
(5) Including shares purchased to settle grants made under the Corporation's performance share unit plan.
(6) Including shares purchased to hedge the Corporation's exposure in respect of grants made under its performance share unit plan.
(7) The 2025-2026 NCIB is ongoing and is set to expire on July 6, 2026.
The Corporation has paid quarterly dividends on its common shares since 2011. The most recent increase, to $0.1200 per common share, was approved on March 23, 2026, and was designated as an "eligible dividend" for Canadian tax purposes. The Board of Directors determined that this latest level of quarterly dividend is appropriate based on the Corporation's current cash flow, earnings, financial position and other relevant factors.
The payment of each quarterly dividend remains subject to the declaration of that dividend by the Board of Directors. The actual amount of each quarterly dividend, as well as each declaration date, record date and payment date are subject to the discretion of the Board of Directors, which will be dependent upon the Corporation's capital requirements, financial performance, liquidity, outlook and other factors that the Board of Directors may deem relevant.
The following table sets out the cash dividends declared during Fiscal 2024, Fiscal 2025 and Fiscal 2026.
Date of Declaration
Date of Payment
Amount of Dividend per Common Share
March 28, 2023
May 5, 2023
$0.0708
June 6, 2023
August 4, 2023
$0.0708
September 12, 2023
November 3, 2023
$0.0708
December 12, 2023
February 2, 2024
$0.0708
April 3, 2024
May 3, 2024
$0.0920
June 11, 2024
August 2, 2024
$0.0920
September 10, 2024
November 1, 2024
$0.0920
December 3, 2024
February 7, 2025
$0.0920
April 2, 2025
May 9, 2025
$0.1058
June 10, 2025
August 8, 2025
$0.1058
August 26, 2025
November 7, 2025
$0.1058
December 10, 2025
February 6, 2026(1)
$0.1058
(1) Dividends have historically been paid at the beginning of the quarter following the declaration date. Consequently, the dividend declared in the fourth quarter of Fiscal 2026 was paid at the beginning of the first quarter of Fiscal 2027.
The table below summarizes the principal amounts outstanding as at February 1, 2026, under the Credit Agreement, the Senior Unsecured Notes (as hereinafter defined) and the US Commercial Paper Program (as hereinafter defined), which are described in greater details hereunder.
Type
Maturity
Principal Amount Outstanding (as at February 1, 2026)
Credit Facility - Facility A
2030-06-27
Credit Facility - Facility B
2028-06-27
Credit Facility - Facility C
2028-06-27
Nil
Credit Facility - Facility D
2026-06-26
Credit Facility - Facility E
2026-12-22
3.850% Fixed Rate Notes
2030-12-16
$600 million
5.165% Fixed Rate Notes
2030-04-26
$450 million
2.443% Fixed Rate Notes
2029-07-09
$375 million
5.533% Fixed Rate Notes
2028-09-26
$500 million
1.505% Fixed Rate Notes
2027-09-20
$300 million
1.871% Fixed Rate Notes(1)
2026-07-08
$375 million
USCP Notes
Maturities may range from overnight to 397 days from the date of issue
Nil
Total
$2.6 billion
(1) On April 2, 2026, the Corporation issued $375 million aggregate principal amount of 3.940% Fixed Rate Notes and $375 million aggregate principal amount of 4.576% Fixed Rate Notes, with a portion of the net proceeds from such issuances being intended to be used by the Corporation to repay the $375 million 1.871% Fixed Rate Notes due July 8, 2026 which will be repaid in full at maturity. See "General Development of the Business - Fiscal 2027 Developments - Offering of Fixed Rate Notes".
The Credit Agreement currently consists of five separate unsecured revolving credit facilities totalling
$1,050.0 million and A$75.0 million.
On June 27, 2025, the Corporation entered into a Fourth Amended and Restated Credit Agreement with the lenders party thereto in order to, among other things, (i) extend the terms of its revolving credit facilities by one year so that the term now ends, for Facility A on June 27, 2030, for Facility B and Facility C, on June 27, 2028, and for Facility D, on June 26, 2026 and (ii) permit drawings under the Credit Agreement in Australian dollars with interest thereon calculated on the basis of the prevailing Australian Bank Bill Swap Reference Rate (plus the applicable margin).
On December 22, 2025, the Corporation and Dollarama Australia entered into the Credit Agreement with the lenders party thereto in order to, among other things, (i) include a new Facility E, maturing on December 22, 2026, in the amount of A$75.0 million ($71.1 million) and (ii) add Dollarama Australia as a borrower for the purposes of Facility E. Concurrently with the effectiveness of the Fifth Amended and Restated Credit Agreement, Dollarama Australia made a drawdown under Facility E, the proceeds of which were used to fully repay its existing Australian credit facilities.
Under the Credit Agreement, the Corporation may, under certain circumstances and subject to receipt of additional commitments from existing lenders or other eligible institutions, request increases of the facilities (other than Facility E) up to an aggregate amount, together with all then-existing commitments (excluding the Facility E commitments), of $1.5 billion.
During Fiscal 2023, the Corporation converted its syndicated credit facilities into sustainability-linked credit facilities and introduced, among other things, an annual pricing adjustment on Facility A, B, C and D which may reduce or increase the borrowing cost applicable thereunder based on the Corporation's annual performance against specific sustainability-performance targets set for each financial year during the term of the Credit Agreement. As a result of a change in the Corporation's methodology to assess greenhouse gas
emissions and the fact that the Corporation is in the process of re-assessing its greenhouse gas emissions intensity reduction target, the Corporation and the lenders party to its Credit Agreement agreed that the performance target relating to Scope 1 and Scope 2 greenhouse gas emissions intensity would not be reported and applied during Fiscal 2026, and that only the target relating to female representation in management level positions would apply.
The margin applicable under the Corporation's Credit Agreement to facilities A, B, C, D and E, ranging from 0% to 1.70% per annum, is calculated based on a leverage ratio reported on a quarterly basis to the lenders and, pursuant to the sustainability pricing adjustment described above, may, except for Facility E, be increased or decreased each fiscal year. The Credit Agreement requires the Corporation to respect a minimum interest coverage ratio and a maximum leverage ratio, each tested quarterly on a consolidated basis. The Corporation has the option to borrow in Canadian, U.S. or Australian dollars. Dollarama Australia has the option to borrow in Australian dollars only.
The Credit Agreement is guaranteed by Dollarama L.P. and Dollarama GP Inc. (collectively, with the Corporation and Dollarama Australia, the "Credit Parties"). The Corporation and Dollarama Australia are solidarily (jointly and severally) liable for their respective obligations under the Credit Agreement. The Credit Agreement contains restrictive covenants that, subject to certain exceptions, limit the ability of the Credit Parties to, among other things, incur, assume, or permit to exist senior ranking indebtedness or liens, engage in mergers, acquisitions, asset sales or sale-leaseback transactions, alter the nature of the business and engage in certain transactions with affiliates. The Credit Agreement also limits the ability of the Credit Parties, in certain circumstances, to make loans, declare dividends and make payments on, or redeem or repurchase equity interests, including if there exists a default or an event of default thereunder. See "Business of the Corporation - Environmental, Social and Governance Matters" and the "Risks and Uncertainties" section of the Corporation's Fiscal 2026 MD&A (Financial Risks - Indebtedness).
All of the Corporation's currently outstanding Senior Unsecured Notes (as defined below) were issued under a trust indenture dated September 18, 2020 between the Corporation and Computershare Trust Company of Canada, as trustee, and supplemental indentures thereto (such indenture, together with the applicable supplemental indentures governing each series of Senior Unsecured Notes, the "Trust Indenture"). Pursuant to the Trust Indenture, the Corporation may issue fixed rate or floating rate senior unsecured notes (the "Senior Unsecured Notes") from time to time. Proceeds from offerings are generally used to reimburse outstanding indebtedness and/or for general corporate purposes.
The Senior Unsecured Notes are direct unsecured obligations of the Corporation and rank equally and pari passu with all other existing and future unsecured and unsubordinated indebtedness of the Corporation. The Senior Unsecured Notes are effectively subordinated to all of the Corporation's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. They will rank senior in right of payment to all future obligations of the Corporation that are, by their terms, expressly subordinated in right of payment thereto and equal in right of payment with all existing and future obligations of the Corporation that are not so subordinated.
The Senior Unsecured Notes are solidarily (jointly and severally) guaranteed, on a senior unsecured basis, as to the payment of principal, interest and premium, if any, and of certain other amounts specified in the Trust Indenture by certain subsidiaries of the Corporation representing combined EBITDA, when aggregated with the EBITDA of the Corporation (on a non-consolidated basis), of at least 80% of the consolidated EBITDA. As at the date hereof, Dollarama L.P., Dollarama GP Inc. and Dollarama Australia are the only guarantors. Dollarama Australia was added as a guarantor on December 22, 2025, concurrently with its addition as a borrower under the Credit Agreement. So long as any Senior Unsecured Notes remain outstanding and the Credit Agreement is in full force and effect, all of the Corporation's subsidiaries that are guarantors from time to time in respect of indebtedness under the Credit Agreement will be guarantors in respect of the Senior Unsecured Notes. If at any time the Credit Agreement is no longer in force and effect, the Corporation's subsidiaries that would have been required to be guarantors in respect of indebtedness under the Credit Agreement according to the applicable test, conditions or set of criteria will constitute guarantors in respect of the Senior Unsecured Notes.
The Corporation may, at its option, at any time and from time to time, make an offer to purchase the Senior Unsecured Notes for cancellation, which may include purchases from or through an investment dealer or a firm holding membership on a recognized stock exchange or by tender, open market purchases, or by private contract, in each case, at any price.
The Corporation may also, at its option, redeem the Senior Unsecured Notes, in whole or in part, at any time and from time to time, by giving not more than 60 days' and not less than 10 days' notice prior to the date fixed for redemption to the holders of the Senior Unsecured Notes to be redeemed, at a redemption price equal to the greater of (a) the Canada Yield Price (as defined in the Trust Indenture) and (b) par, together, in each case, with accrued and unpaid interest, if any, to the date fixed for redemption.
Under the Trust Indenture, if a Change of Control Triggering Event occurs (as defined in the Trust Indenture), the Corporation will be required to make (or arrange for a third party to make) an offer to repurchase all or, at the option of each holder of Senior Unsecured Notes, any part (equal to $1,000 or an integral multiple thereof) of such holder's notes, at a purchase price payable in cash equal to 101% of the outstanding principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.
Under the terms of its commercial paper program in the United States (the "US Commercial Paper Program"), the Corporation may issue, from time to time, USCP Notes, being unsecured commercial paper notes with maturities not in excess of 397 days from their date of issue, on a private placement basis. The aggregate principal amount of USCP Notes that may be outstanding at any one time under the US Commercial Paper Program may not exceed US$700.0 million. The Corporation uses derivative instruments to convert the net proceeds from the issuance of USCP Notes into Canadian dollars, and uses those proceeds for general corporate purposes.
The USCP Notes are direct unsecured obligations of the Corporation and rank equally and pari passu with all other existing and future unsecured and unsubordinated indebtedness of the Corporation. The USCP Notes are effectively subordinated to all of the Corporation's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. They will rank senior in right of payment to all future obligations of the Corporation that are, by their terms, expressly subordinated in right of payment thereto and equal in right of payment with all existing and future obligations of the Corporation that are not so subordinated.
The USCP Notes are unconditionally guaranteed by Dollarama L.P. and Dollarama GP Inc., each a wholly-owned subsidiary of the Corporation. The Corporation's Credit Agreement serves as a liquidity backstop for the repayment of USCP Notes issued under the US Commercial Paper Program.
Disclaimer
Dollarama Inc. published this content on April 21, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2026 at 22:37 UTC.