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Dollarama partners with Latin American operator, could lead to ownership stake

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05 Feb 2013 11:30 #121260 by chairman
MONTREAL - Discount retailer Dollarama is looking beyond Canada to potentially fuel its long-term growth by entering into an eight-year agreement to help Latin American chain Dollar City to expand its network of stores.

Under the deal announced Tuesday, the Montreal-based company will share its business expertise and provide sourcing services to Dollar City.

Dollarama (TSX:DOL) won't take on operational responsibilities or make a capital commitment, but could acquire a majority interest in the chain beginning in year seven.

The fledgling dollar store chain operates 15 locations in El Salvador and Guatemala but wants to expand in Central America, along with Colombia, Peru and Ecuador.

Dollarama CEO Larry Rossy said the Canadian company is as much an importer as it is a retailer. In addition to growing its network of stores in Canada, Dollarama is continually looking to develop its low-cost direct sourcing.

Read it on Global News: Global News | Dollarama partners with Latin American operator, could lead to ownership stake
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