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Dollarama plans to build distribution centre in Balzac

The new Dollarama facility will take three years to build north of Calgary in an area that has seen numerous distribution centre developments over the past years.
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Dollarama's second distribution centre to be built in Balzac will serve its stores in Western Canada

A new Dollarama warehouse and distribution centre is slated to open in Balzac in 2027.

"The Corporation has entered into an agreement to acquire land in the Calgary, Alberta region for a total cash consideration of $46.7 million, subject to customary closing purchase price adjustments," the company stated in their fiscal 2025 third quarter results online.

The facility will take three years to build in the Balzac area, which has seen numerous distribution centre developments over the past years.

This is the second distribution centre for the Montreal-based company, set to serve its stores in Western Canada, while their existing logistics hub in Montreal will serve those in Eastern Canada.

"Having a two-node logistics model will enable the Corporation to optimize its warehousing and distribution operations and support its growth plans while generating cost savings," the company stated.

The closing of the transaction is anticipated in the fourth quarter of fiscal 2025 and the facility is expected to be commissioned by the end of 2027. The construction, excluding land costs, is anticipated to require approximately $450 million over three years, expected to be funded with cash flow from operating activities.

With Dollarama seeing increased profits this year, it plans to expand with 2,200 more locations by 2034, they reported. Currently, there are 1,601 stores throughout Canada with an original goal of opening 2,000 stores by 2031.

Sales increased by 5.7 per cent to $1,562.6 million, compared to $1,477.7 million last year, according to Dollarama's report.

What the new Balzac facility means for job opportunities in Rocky View County is still unclear.

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