Press Release.

TORONTO, ON – July 5, 2022 – PesoRama Inc. (TSXV: PESO) (“PesoRama” or the “Company“), a Canadian company operating dollar stores in Mexico under the JOi Canadian Stores brand, today announced its financial results for the three months ended April 30, 2022 (“Q1 2022”). All financial figures are in Canadian dollars unless otherwise noted: 

Key Financial and Operational Highlights  

“We are extremely proud of the business we have built and the brand awareness we have gained as Mexico’s only true dollar store retailer in such a short period of time,” said Rahim Bhaloo, Founder and Executive Chairman of PesoRama. “The Company has achieved a lot over the past quarter, with our transition to a publicly-traded company, two new store openings, a strategic supply chain partnership, and the introduction of multi-price points to enhance product mix and value.”  

“Solidifying our foundation is our focus for the near term,” said Erica Fattore, President & Chief Executive Officer of PesoRama. “This includes driving profitability in our existing stores, managing inventory levels, increasing store traffic and average ticket per visit, as well as optimizing the overall customer experience as we continue to add to our strong pipeline for future store locations. We are well capitalized to execute on our near-term priorities and are actively exploring opportunities to further strengthen our balance sheet with capital that will allow us to maximize shareholder value as we deliver on our growth plans.” 

Outlook and Growth

PesoRama’s precision growth-oriented business model addresses the gap between local bodegas and big box retailers and has proven highly successful as the Company continues toward its goal of opening 500 stores over the next 5 years. In 2022, PesoRama has opened two new stores in Mexico: Cuernavaca and Cuemanco.  

JOi Canadian Stores offers a truly unmatched value proposition in the Mexican market — discounted general merchandise and everyday high-quality staples at affordable prices that cater to a wide array of client segments. By strategically targeting high-traffic, easily accessible locations close to established major retailers with a complementary client mix, the Company is able to attract customers who desire convenience and consistency. The newest store opening, PesoRama’s first street front location, has proven to be a great success, with increased brand awareness and increased foot traffic. The Company intends to move forward with the addition of this type of model in the next round of store builds. The Company will continue to optimize efficiencies within its stores as well as building on its unmatched customer experience and overall satisfaction.  

Supply chain efficiencies are a core competency for PesoRama. In April 2022, PesoRama entered into a strategic partnership with an established retail conglomerate allowing the Company to leverage its economies of scale and service levels. PesoRama is not reliant on China as a supplier of goods, having recently diversified its partners from areas as diverse as South Asia and Europe. Additionally, PesoRama has established a strong in-house team to manage the logistics, warehousing, and distribution of its broad product assortment. The Company’s distribution center in Mexico is strategically located to optimize delivery cost and time.  

As part of the store maximization strategy, the Company has added various new brands and products to store shelves to better serve customer needs and wants. The Company is also in the process of rolling out its multi-price point strategy to broaden product range, increasing the growth of new categories across all departments (i.e., adding pots and pans to the kitchen department) to enhance customer loyalty. PesoRama believes this strategy will help increase the average ticket per customer and traffic to its stores through a broader offering. The newly added price points are 30 and 35 pesos and the Company will look to test additional price points in the future.  

This earnings news release should be read in conjunction with the Company’s interim condensed consolidated financial statements for the three-month period ending April 30, 2022, which can be found on PesoRama’s issuer profile on SEDAR at www.sedar.com.