This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dollarama Enters Into An Agreement To Provide Business Expertise And Sourcing Services To Central American Dollar Store Chain Dollar City

MONTREAL, Feb. 5, 2013 /PRNewswire/ - Dollarama Inc. ("Dollarama" or the "Corporation") (TSX: DOL) announced today that it has, through a wholly-owned subsidiary, entered into an agreement to share its business expertise and provide sourcing services (the "Agreement") to Dollar City, a Central American dollar store chain looking to expand its activities in Central America, Colombia, Peru and Ecuador (the "Region"). Dollar City currently operates 15 locations in the Region.

"Dollarama is as much an importer as it is a retailer. Our business isn't just based on growing our network of stores; it's also based on the continued development of our low-cost direct sourcing platform," said Larry Rossy, Chairman and CEO of Dollarama.

As per the terms of the Agreement, Dollarama will share its business and operational expertise with Dollar City as well as leverage its direct sourcing and importing expertise to provide their growing network of stores with a compelling product offering. Dollarama will not be taking on any operational responsibilities with respect to Dollar City or making any capital commitments. The Agreement has a term of eight years and contains key financial performance indicators at specified milestones throughout the term. It also includes an option to acquire a majority interest in Dollar City as of the beginning of the seventh year of the term.

"Dollarama's unique dollar store concept and compelling product offering continues to be very successful with Canadian consumers. Our objective is to test the potential of the Latin American market in a way that minimizes risk, capital and time investment and we believe that we have found the right strategic approach and the right partners to achieve this," added Mr. Rossy.

While Dollarama does not expect the Agreement to have a material operational or financial impact on the Corporation in the medium term, it believes that the Latin American market holds long-term potential.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs