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Dollarama to sell products priced up to C$5 to shore up margins

Discount stores, which have benefited from shoppers turning to off-price retailers to protect their pockets during the pandemic-led economic downturn, have been bumping up prices and focusing on selling costlier items to offset shrinking margins. Dollarama’s U.S. counterpart Dollar Tree Inc also raised prices for most of its products to $1.25 from the traditional $1 price point last year, in a bid to protect its profits from spiraling freight costs. Montreal-based Dollarama, which has over 1,400 stores across Canada, said it expects supply chain and other inflationary pressures to be more this year and projected a decline in gross margins for its fiscal year 2023.

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