Dollarcity is preparing to reach Mexico, Latin America’s second-largest economy.
The chain of stores of Salvadoran origin, Dollarcity, does not slow its growth in Latin America after closing with 547 branches in four countries in the first quarter of 2024.
Despite the sustained growth in the Salvadoran market, its operation in Colombia is currently the largest, with 324 stores, followed by Guatemala, with 99. In El Salvador it has 72 locations and in Peru manages 52.
The brand is also preparing to debut in Mexico as part of an aggressive plan to expand in Latin America after Canadian Dollarama, a Dollarcity shareholder, acquired an additional 10 per cent interest in the operation last June.
With this acquisition, Dollarama has a 60.1 % stake in Dollarcity, as well as the option to acquire an additional interest of 9.89% at any time before December 21, 2027, notes a statement released by the Canadian company.
“With its strong leadership team, Dollarcity is well positioned to continue to deliver profitable growth, both from its current operating markets and our next entry market,” said Neil Rossy, president and chief executive of Dollarama.
Journey from popular shops
Dollarcity opened its first store in El Salvador in 2009 in Metrocentro San Salvador as an idea of businessman Marco Andrés Baldocchi Kriete, who intended to replicate the model of North American low-cost warehouses.
In 2013 he signed an alliance with Dollarama for his regionalization plan, which allowed him to reach the Guatemalan market in 2015 and in 2016 to the Colombian. Peru entered Peru in 2021.
For the time being, Dollarama and the founding shareholders of Dollarcity agreed on a “future expansion of the business to a new country,” which could be Mexico. The firm aims to run its first store in Latin America’s second-largest economy in 2026.
Dollarama’s chief executive acknowledged that since they acquired Dollarcity’s majority interest in 2019, it is the business unit that has grown its revenue the most. Dollarcity is well positioned to continue offering profitable growth, both from its current trading markets and our next entry market, he added.
The increase in Dollarama’s share also updated the expansion plan in the current four operating markets. Initially, it was planned to reach 850 stores by 2029, but now the target is 1,050 by 2031.
Dollarcity offers a portfolio of consumable products and seasonal merchandise, with prices below $4.
This article has been translated after first appearing in Diario El Mundo