Dollarama names founder's son as new CEO as sales surge

Canada's leading value chain has promoted its head merchant to be the new CEO as the company logs another quarter of impressive sales growth.

Dollarama Inc. has appointed Neil Rossy as president and CEO, effective May 1, 2016. Company founder and current CEO Larry Rossy will continue to play an active role in key areas of Dollarama's business as executive chairman.

"Neil is an experienced retail executive with an intimate knowledge of all company operations, and is respected by his colleagues," said Stephen Gunn, lead director of Dollarama's board. " The board has full confidence in Neil's ability to lead Dollarama's growth in the coming years with the support of the strong team in place."

Neil Rossy, 46, is currently chief merchandising officer and a member of the board since 2004. 

The company also reported an increase in sales, net earnings and earnings per share for the fourth quarter Jan. 31. Compared to the prior year quarter, sales increased by 14.6% to $766.5 million. Same store sales grew 7.9%. Operating income grew 25.6% to $176.9 million , or 23.1% of sales, compared to 21.1% of sales. And diluted net earnings per common share increased by 31.6%.

The corporation opened 25 net new stores during the fourth quarter of fiscal 2016 compared to 27 net new stores during the corresponding period of the previous fiscal year.

"Looking at the fourth quarter in particular, we enjoyed a good holiday period with ideal weather conditions and a strong customer response to our seasonal assortment," said Larry Rossy. "In addition, we made select changes to our product mix and prices, and we expect these initiatives to help us manage currency headwinds and drive our performance in Fiscal 2017. We are also seeing more pricing flexibility from suppliers in China due to a softer demand environment, and this should also help in offsetting the weakness of the Canadian dollar this year."