Dollarama retail company has started introducing new price points reaching up to $5, adding new products and restocking others amid a shift in consumer spending patterns.

A company official said on Wednesday that the store will set the maximum price for goods at $5.

The company announced increased sales and profits in the quarter ending May 1 as pandemic restrictions were lifted and deal hunting intensified as shoppers continue to face rising inflation.

Neil Rossy, President and CEO of Dollarama, said the stores have seen an increase in the number of shoppers and higher demand for daily consumables and seasonal products.

He said during a conference call to discuss the company’s latest financial results, "The first quarter reaffirms the importance of our business model." "It also reflects the positive consumer response to our value proposition in a high inflation environment."

Dollarama announced plans to raise its maximum price to $5 earlier this year, but customers have not yet seen these prices in stores. However, Rossy indicated that setting the top price enabled the company to bring back popular products that were removed from shelves amid rising costs as well as introduce new products.

The company made a profit of $145.5 million, up from $113.6 million in the same quarter last year, with sales up 12.4 percent.

This result came as spending patterns seemed to change during the quarter, with customers shopping more frequently but buying less per visit compared to last year.

Rossy added that the company will continue working to mitigate supply chain pressures and ongoing costs to provide consumers with the best relative value in the market.

He said the company is still facing shipping delays ranging from six to eight weeks and is ordering its goods much earlier than usual.

However, unlike the United States, where some retailers are reducing excess inventory as consumer demand wanes, at Dollarama Canada the goods remain available over time and always keep pace with annual seasonal requirements and fashion trends, according to J.B. towner, Chief Financial Officer at Dollarama.

Meanwhile, Dollarama’s profit reached 49 cents per diluted share for the quarter, up from a profit of 37 cents per diluted share in the same quarter last year.

Total sales in the first quarter of fiscal year 2023 for the company amounted to $1.07 billion, up from $954.2 million. Same-store sales rose 7.3 percent.

The Montreal-based store owns 1,431 stores in Canada, including 10 new stores opened in its last quarter.

The company also owns 50.1 percent of the shares in Dollarcity, a retailer in Latin America with 358 stores in Colombia, Guatemala, El Salvador, and Peru.

Edited by: Dima Abu Khair