Dollarama bonanza as shoppers look for bargains in tough Alberta economy

The slower Alberta economy means people who usually shop at discount dollar stores like Dollarama forcheap batteries, glow sticks andhelium balloons are now adding groceries andhousehold goods to their carts.

"When you lose your job and you are uncertain about the future, you make different types of decisions thanwhen you are feeling very confident and you have a job," saidDebiAndrus, assistant professor of marketing at the University of Calgary'sHaskayneSchool of Business.

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Dollarama posteda better-than-expected earnings report with increases in both salesand profits.

Its second-quarter results showed sales increased by nearly 15 per centand 17 new stores were added.

"So for Dollarama, it's not surprising to see their earnings do well; we'll see Walmart do very well. Any store that focuses on lower prices will start to pick up what we call 'share of wallet' or market shares in terms of their earnings," Andrus said.

In tougher economic times, people on limited or shrinking incomesare looking for deals wherever they can find them.

"Iuse them alot,the dollar stores," saidFredMcaughey, at a Dollaramain Calgary.

"There's a lot of savings,especially for a student who can't afford a lot depends what's on sale, we follow the coupons,"he said.

Andrussays the economy is cyclical and businesses build their plans around this ebb and flow;however,lower end retailers will be the big winnersin lean times.

Along with its second-quarter earnings report,Dollarama approved a quarterly cash dividend for shareholders of nine cents.