Dollarama Inc. DOL-T plans to accelerate its pace of new store openings in Canada in the coming year, citing “heightened uncertainty” in the economy driving demand for its discount products.

The Montreal-based discount retailer announced its plans on Thursday, as it reported a nearly 21-per-cent jump in profits in its fourth quarter and raised its quarterly dividend by 15 per cent.

Dollarama expects to open 70 to 80 net new locations by early 2026. Dollarama has been steadily opening new locations in recent years, generally at a pace of 60 to 70 locations per year. The company had 1,616 stores across Canada, as of Feb. 2.

The expansion will include moving into some soon-to-be empty spaces “from certain retailer exiting the market,” according to a press release issued by the company. Dollarama did not specify which leases it is considering taking over.

Hudson’s Bay Co. is currently looking for bidders for many of its store leases, as the company liquidates the majority of its department stores across Canada. However, those spaces are significantly larger than a typical Dollarama store.

“While consumer behaviour and the path of the economy remain hard to predict, the corporation believes that consumers will continue to respond positively to the affordability of its products, the convenience and proximity of its national store network, and its commitment to offering compelling value across its broad assortment of consumables, seasonal items and general merchandise,” said a Dollarama press release, issued on Thursday.

A number of retailers have noted cautious spending by Canadians who have been severely affected by years of inflation and higher interest rates, and who have grown even warier amid a trade war with the United States.

In this environment, Dollarama has seen sales increase as more people visit its stores looking for deals.

Comparable sales – an important metric that looks at sales increases not caused by new store openings – grew by 4.9 per cent in the fourth quarter. That was compared to the same period last year, when Dollarama saw comparable growth of 8.7 per cent. The stores have been seeing strong demand for “consumables” such as food and household products. (The fourth quarter this year included an extra week compared to the prior year, but comparable numbers are reported on an equivalent 13-week basis.)

In total, sales increased by 14.8 per cent in the 14 weeks ended Feb. 2, to nearly $1.9-billion.

Net earnings grew to $391-million or $1.40 per diluted common share in the fourth quarter, compared to $323.8-million or $1.15 per diluted common share in the same period the prior year.

The company announced on Thursday that it will now pay a quarterly dividend of 10.58 cents per share, up from 9.2 cents per share.

Dollarama’s plans for expansion are not limited to Canada. Last month, the retailer announced a deal to buy Australian discount store chain The Reject Shop Ltd. The company also owns a majority stake in Latin American retailer Dollarcity, which has also been expanding its store network.