Dollarama sales soared nearly 20% for the quarter, while comparable store sales moved 15% higher as budget conscious shoppers continued to flock to the discounter.

In this morning’s quarterly earnings statement, the company says the increase in comparable store sales is primarily attributable to higher sales across the corporation’s product categories, including higher demand for consumables.

Dollarama hiked its guidance and now expects comparable store-sales growth of between 10% and 11% for fiscal 2024, compared to between 5% and 6% it had previously estimated.

The discount retailer is reporting that its sales spiked to $1.46 billion in Q2, from $1.22 billion a year earlier, topping analyst expectations. Net income for the quarter ending July 30 rose to $245.8 million, compared to $193.5 million for the period a year prior.

“Dollarama continues to deliver unparalleled value to a growing number of consumers seeking affordable everyday products at low price points, and we expect this strong demand to persist through the second half of the year in the current macro-economic context,” says Neil Rossy, Dollarama president and CEO.

“Our performance year to date for this fiscal year reflects our differentiated ability to provide compelling value across our broad product mix and a consistent shopping experience.”

As Dalhousie food analyst Dr. Sylvain Charlebois pointed out in a recent editorial for Retail Insider, discount chains like Dollarama provide “identical non-perishable products to regular grocery stores but at significantly lower prices,” often falling within the 30% to 75% range, which is resonating with cash-strapped consumers.

In Metro’s August earnings call, president and CEO Eric La Flèche said there’s been a continuing shift to discounters like its Food Basics banner, calling these stores a “big driver of growth,” especially in a challenging retail environment. Competitors like Loblaw and Empire have made similar recent statements about seeing strength in their discount banners.