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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549



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FORM 10-Q



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|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended November 4, 2007

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from  to

333-134550

(Commission File Number)



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Dollarama Group L.P.

(Exact name of registrant as specified in its charter)



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|                                               |  |                                  
|---------------------------------------------- |  | ---------------------------------
|Québec, Canada                                 |  | Not Applicable                   
|(State or other jurisdiction of incorporation) |  | (IRS Employer Identification No.)



|                                         |  |              
|---------------------------------------- |  | -------------
|5430 Ferrier, Montréal                   |  | H4P 1M2      
|(Address of principal executive offices) |  | (Postal Code)

(514) 737-1006

(Registrants telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)



---

Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated filer, per Rule 12b-2 of the Exchange Act.

Large accelerated filer ̈Accelerated filer ̈Non-accelerated filer  x

Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈No  x



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##### Table of Contents

TABLE OF CONTENTS



|                              |  |                                                                                       |  |     
|----------------------------- |  | ------------------------------------------------------------------------------------- |  | ----
|                              |  |                                                                                       |  | Page
|PART I. FINANCIAL INFORMATION |  |                                                                                      
|                              |  |                                                                                      
|Item 1.                       |  | Consolidated Financial Statements                                                     |  | 3   
|                              |  |                                                                                      
|Item 2.                       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations |  | 13  
|                              |  |                                                                                      
|Item 3.                       |  | Quantitative and Qualitative Disclosures about Market Risk                            |  | 23  
|                              |  |                                                                                      
|Item 4.                       |  | Controls and Procedures                                                               |  | 24  
|                              | 
|PART II. OTHER INFORMATION    |  |                                                                                      
|                              |  |                                                                                      
|Item 1.                       |  | Legal Proceedings                                                                     |  | 24  
|                              |  |                                                                                      
|Item 1A.                      |  | Risk Factors                                                                          |  | 24  
|                              |  |                                                                                      
|Item 6.                       |  | Exhibits                                                                              |  | 24  
|                              |  |                                                                                      
|                              |  | Signatures                                                                            |  | 25  



2



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##### Table of Contents

Dollarama Group L.P. - Groupe Dollarama S.E.C.

PART I  FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

Dollarama Group L.P.

Interim Consolidated Balance Sheet

(expressed in thousands of Canadian
dollars)



|                                              |  |                        |   |  |                         
|--------------------------------------------- |  | ---------------------- | - |  | ------------------------
|                                              |  | As atNovember 4,2007 $ |   |  | As at February 4, 2007 $
|                                              |  | (unaudited)            |   |  |                         
|Assets                                        |  |                        |   |  |                         
|Current assets                                |  |                        |   |  |                         
|Cash and cash equivalents                     |  | 1,829                  |   |  | 47,695                  
|Accounts receivable                           |  | 2,226                  |   |  | 5,760                   
|Income taxes recoverable                      |  | 1,929                  |   |  | 1,054                   
|Deposits and prepaid expenses                 |  | 10,893                 |   |  | 8,598                   
|Derivative financial instruments (note 4)     |  |                       |   |  | 7,224                   
|Merchandise inventories                       |  | 204,322                |   |  | 166,017                 
|                                              |  |                        |   |  |                         
|                                              |  | 221,199                |   |  | 236,348                 
|Property and equipment                        |  | 106,171                |   |  | 84,665                  
|Goodwill                                      |  | 727,782                |   |  | 727,782                 
|Other intangible assets                       |  | 118,046                |   |  | 120,379                 
|                                              |  |                        |   |  |                         
|                                              |  | 1,173,198              |   |  | 1,169,174               
|                                              |  |                        |   |  |                         
|Liabilities                                   |  |                        |   |  |                         
|Current liabilities                           |  |                        |   |  |                         
|Bank overdraft                                |  | 5,346                  |   |  |                        
|Accounts payable                              |  | 12,621                 |   |  | 15,780                  
|Accrued expenses and other                    |  | 31,335                 |   |  | 32,726                  
|Derivative financial instruments (note 4)     |  | 149,986                |   |  | 12,409                  
|Current portion of long-term debt (note 2)    |  | 24,097                 |   |  | 13,496                  
|Income taxes payable                          |  | 475                    |   |  |                        
|                                              |  |                        |   |  |                         
|                                              |  | 223,860                |   |  | 74,411                  
|Long-term debt (note 2)                       |  | 454,641                |   |  | 578,066                 
|Other liabilities                             |  | 26,946                 |   |  | 25,413                  
|                                              |  |                        |   |  |                         
|                                              |  | 705,447                |   |  | 677,890                 
|                                              |  |                        |   |  |                         
|Commitments and contingencies (note 3)        |  |                        |   |  |                         
|Partners Capital                             |  |                        |   |  |                         
|General partner                               |  | 374                    |   |  | 374                     
|Limited partner                               |  | 358,841                |   |  | 389,313                 
|Contributed surplus                           |  | 2,416                  |   |  | 1,337                   
|Retained earnings                             |  | 142,562                |   |  | 93,478                  
|Accumulated other comprehensive income (loss) |  | (36,442                | ) |  | 6,782                   
|                                              |  |                        |   |  |                         
|                                              |  | 467,751                |   |  | 491,284                 
|                                              |  |                        |   |  |                         
|                                              |  | 1,173,198              |   |  | 1,169,174               
|                                              |  |                        |   |  |                         

The accompanying notes are an integral part of the interim consolidated financial statements.



3



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Dollarama Group L.P.

Interim Consolidated Statement of Earnings

(Unaudited)

(expressed in thousands of Canadian dollars)



|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|----------------------------------------------------------------------------------- |  | ----------------------------------------------- |  | --------------------------------------------------- | - |  | ----------------------------------------------- |  | -------------------------------------------------- | -
|                                                                                    |  | For the 13-week period ended November 4, 2007
$ |  | For the three-month period ended October 31, 2006
$ |   |  | For the 39-week period ended November 4, 2007
$ |  | For the nine-month period ended October 31, 2006
$ |  
|Sales                                                                               |  | 241,905                                         |  | 218,477                                             |   |  | 690,985                                         |  | 611,560                                            |  
|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|Cost of sales and expenses                                                          |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|Cost of sales                                                                       |  | 160,700                                         |  | 147,501                                             |   |  | 458,113                                         |  | 413,202                                            |  
|General, administrative and store operating expenses                                |  | 46,163                                          |  | 37,405                                              |   |  | 131,006                                         |  | 107,382                                            |  
|Amortization                                                                        |  | 4,588                                           |  | 3,415                                               |   |  | 12,926                                          |  | 9,249                                              |  
|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|                                                                                    |  | 211,451                                         |  | 188,321                                             |   |  | 602,045                                         |  | 529,833                                            |  
|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|Operating income                                                                    |  | 30,454                                          |  | 30,156                                              |   |  | 88,940                                          |  | 81,727                                             |  
|Amortization of deferred financing costs                                            |  | 1,089                                           |  | 1,015                                               |   |  | 3,235                                           |  | 3,050                                              |  
|Interest expense                                                                    |  | 10,876                                          |  | 12,001                                              |   |  | 32,739                                          |  | 35,337                                             |  
|Foreign exchange loss (gain) on derivative financial instruments and long-term debt |  | 1,773                                           |  | (693                                                | ) |  | 3,615                                           |  | (679                                               | )
|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|Earnings before income taxes                                                        |  | 16,716                                          |  | 17,833                                              |   |  | 49,351                                          |  | 44,019                                             |  
|Provision for current income taxes                                                  |  | 67                                              |  | 421                                                 |   |  | 267                                             |  | 1,264                                              |  
|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  
|Net earnings for the period                                                         |  | 16,649                                          |  | 17,412                                              |   |  | 49,084                                          |  | 42,755                                             |  
|                                                                                    |  |                                                 |  |                                                     |   |  |                                                 |  |                                                    |  



4



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Dollarama Group L.P.

Interim Consolidated Statement of Partners Capital

(Unaudited)

(expressed in thousands of Canadian dollars)



|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|------------------------------------------------------------------------------------------ |  | ----------------------- |  | ----------------------- | - |  | -------------------- |  | ----------------- |  | -------------------------------------------- | - |  | ------- | -
|                                                                                           |  | Generalpartnercapital $ |  | Limitedpartnercapital $ |   |  | Contributedsurplus $ |  | Retainedearnings$ |  | Accumulatedothercomprehensiveincome (loss) $ |   |  | Total $ |  
|Balance  January 31, 2006                                                                 |  | 374                     |  | 394,876                 |   |  | 800                  |  | 11,800            |  | (6,030                                       | ) |  | 401,820 |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Other comprehensive income                                                                 |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Net earnings for the period                                                                |  |                        |  |                        |   |  |                     |  | 42,755            |  |                                             |   |  | 42,755  |  
|Unrealized income on derivative financial instruments, net of reclassification adjustments |  |                        |  |                        |   |  |                     |  |                  |  | 2,107                                        |   |  | 2,107   |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Total comprehensive income                                                                 |  |                        |  |                        |   |  |                     |  | 42,755            |  | 2,107                                        |   |  | 44,862  |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Stock-based compensation (note 5)                                                          |  |                        |  |                        |   |  | 463                  |  |                  |  |                                             |   |  | 463     |  
|Capital distributions                                                                      |  |                        |  | (4,216                  | ) |  |                     |  |                  |  |                                             |   |  | (4,216  | )
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Balance  October 31, 2006                                                                 |  | 374                     |  | 390,660                 |   |  | 1,263                |  | 54,555            |  | (3,923                                       | ) |  | 442,929 |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|                                                                                           |  |                         |  |                         |   | 
|Balance  February 4, 2007                                                                 |  | 374                     |  | 389,313                 |   |  | 1,337                |  | 93,478            |  | 6,782                                        |   |  | 491,284 |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Other comprehensive income                                                                 |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Net earnings for the period                                                                |  |                        |  |                        |   |  |                     |  | 49,084            |  |                                             |   |  | 49,084  |  
|Unrealized loss on derivative financial instruments, net of reclassification adjustments   |  |                        |  |                        |   |  |                     |  |                  |  | (43,224                                      | ) |  | (43,224 | )
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Total comprehensive income (loss)                                                          |  |                        |  |                        |   |  |                     |  | 49,084            |  | (43,224                                      | ) |  | 5,860   |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Stock-based compensation (note 5)                                                          |  |                        |  |                        |   |  | 1,079                |  |                  |  |                                             |   |  | 1,079   |  
|Capital distributions                                                                      |  |                        |  | (30,472                 | ) |  |                     |  |                  |  |                                             |   |  | (30,472 | )
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  
|Balance  November 4, 2007                                                                 |  | 374                     |  | 358,841                 |   |  | 2,416                |  | 142,562           |  | (36,442                                      | ) |  | 467,751 |  
|                                                                                           |  |                         |  |                         |   |  |                      |  |                   |  |                                              |   |  |         |  

The accompanying notes are an integral part of the interim consolidated financial statements.



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Dollarama Group L.P.

Interim Consolidated Statement of Cash Flows

(Unaudited)

(expressed in thousands of Canadian dollars)



|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|-------------------------------------------------------- |  | ----------------------------------------------- | - |  | --------------------------------------------------- | - |  | ----------------------------------------------- | - |  | -------------------------------------------------- | -
|                                                         |  | For the 13-week period ended November 4, 2007
$ |   |  | For the three-month period ended October 31, 2006
$ |   |  | For the 39-week period ended November 4, 2007
$ |   |  | For the nine-month period ended October 31, 2006
$ |  
|                                                         |  |                                                 |   |  | (restated  note 10)                                |   |  |                                                 |   |  | (restated  note 10)                               |  
|Operating activities                                     |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Net earnings for the period                              |  | 16,649                                          |   |  | 17,412                                              |   |  | 49,084                                          |   |  | 42,755                                             |  
|Adjustments for                                          |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Amortization of property and equipment                   |  | 4,501                                           |   |  | 3,022                                               |   |  | 12,558                                          |   |  | 8,277                                              |  
|Amortization of intangible assets                        |  | 824                                             |   |  | 1,442                                               |   |  | 2,672                                           |   |  | 3,641                                              |  
|Change in fair value of derivative financial instruments |  | 49,185                                          |   |  | 4,731                                               |   |  | 101,577                                         |   |  | 8,758                                              |  
|Amortization of deferred financing costs                 |  | 1,089                                           |   |  | 1,015                                               |   |  | 3,235                                           |   |  | 3,050                                              |  
|Foreign exchange gain on long-term debt                  |  | (51,906                                         | ) |  | (3,764                                              | ) |  | (108,040                                        | ) |  | (7,058                                             | )
|Amortization of unfavourable lease rights                |  | (737                                            | ) |  | (1,049                                              | ) |  | (2,304                                          | ) |  | (2,669                                             | )
|Deferred lease inducements                               |  | 824                                             |   |  | 664                                                 |   |  | 1,958                                           |   |  | 2,221                                              |  
|Deferred leasing costs                                   |  | (30                                             | ) |  | (40                                                 | ) |  | (450                                            | ) |  | (423                                               | )
|Deferred tenant allowances                               |  | 817                                             |   |  | 876                                                 |   |  | 2,584                                           |   |  | 3,056                                              |  
|Amortization of deferred tenant allowances               |  | (274                                            | ) |  | (170                                                | ) |  | (705                                            | ) |  | (387                                               | )
|Stock-based compensation                                 |  | 211                                             |   |  | 155                                                 |   |  | 1,079                                           |   |  | 463                                                |  
|Amortization of deferred leasing costs                   |  | 37                                              |   |  | 38                                                  |   |  | 111                                             |   |  | 102                                                |  
|Loss on disposal of property and equipment               |  | 5                                               |   |  | 21                                                  |   |  | 29                                              |   |  | 41                                                 |  
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|                                                         |  | 21,195                                          |   |  | 24,353                                              |   |  | 63,388                                          |   |  | 61,827                                             |  
|Changes in non-cash working capital components           |  | (5,501                                          | ) |  | (21,131                                             | ) |  | (42,016                                         | ) |  | (1,132                                             | )
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|                                                         |  | 15,694                                          |   |  | 3,222                                               |   |  | 21,372                                          |   |  | 60,695                                             |  
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Investing activities                                     |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Purchase of property and equipment                       |  | (14,321                                         | ) |  | (12,596                                             | ) |  | (34,323                                         | ) |  | (32,588                                            | )
|Proceeds on disposal of property and equipment           |  | 137                                             |   |  | 51                                                  |   |  | 230                                             |   |  | 154                                                |  
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|                                                         |  | (14,184                                         | ) |  | (12,545                                             | ) |  | (34,093                                         | ) |  | (32,434                                            | )
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Financing activities                                     |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Increase in bank indebtedness                            |  |                                                |   |  |                                                    |   |  | 10,000                                          |   |  |                                                   |  
|Decrease in bank indebtedness                            |  | (10,000                                         | ) |  |                                                    |   |  | (10,000                                         | ) |  |                                                   |  
|Increase in bank overdraft                               |  | 5,346                                           |   |  |                                                    |   |  | 5,346                                           |   |  |                                                   |  
|Repayment of long-term debt                              |  | (6,694                                          | ) |  | (20,684                                             | ) |  | (8,019                                          | ) |  | (28,061                                            | )
|Capital distributions                                    |  | (959                                            | ) |  | (1,335                                              | ) |  | (30,472                                         | ) |  | (4,216                                             | )
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|                                                         |  | (12,307                                         | ) |  | (22,019                                             | ) |  | (33,145                                         | ) |  | (32,277                                            | )
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Decrease in cash and cash equivalents                    |  | (10,797                                         | ) |  | (31,342                                             | ) |  | (45,866                                         | ) |  | (4,016                                             | )
|Cash and cash equivalents  Beginning of period          |  | 12,626                                          |   |  | 58,209                                              |   |  | 47,695                                          |   |  | 30,883                                             |  
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  
|Cash and cash equivalents  End of period                |  | 1,829                                           |   |  | 26,867                                              |   |  | 1,829                                           |   |  | 26,867                                             |  
|                                                         |  |                                                 |   |  |                                                     |   |  |                                                 |   |  |                                                    |  

The accompanying notes are an integral part of the interim consolidated financial statements.



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Dollarama Group L.P.

Notes to Interim Consolidated Financial Statements

(Unaudited)

November 4, 2007

(tabular amounts expressed in thousands of Canadian dollars, unless otherwise noted)



|1 | Basis of presentation
|- | ---------------------

The unaudited interim
consolidated financial statements are based upon accounting policies and methods of their application consistent with those used and described in the annual consolidated financial statements of Dollarama Group L.P. (the Partnership) as
contained in the most recent Annual Report on Form 10-K/A (Form 10-K/A). The unaudited interim consolidated financial statements do not include all of the financial statement disclosures included in the annual consolidated
financial statements prepared in accordance with Canadian generally accepted accounting principles (Canadian GAAP) and therefore should be read in conjunction with the Partnerships most recent Form 10-K/A.

In the opinion of management of Dollarama Group GP Inc., acting in its capacity as General Partner of the Partnership, the unaudited interim consolidated
financial statements reflect all adjustments, which consist only of normal and recurring adjustments, necessary to present fairly the financial position and results of operations and cash flows in accordance with Canadian GAAP. The results reported
in these financial statements are not necessarily indicative of the results that may be expected for the entire year. Historically, the last quarter of the year has presented a higher level of activity and produced better results than the first
three quarters.



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Dollarama Group L.P.

Notes to Interim Consolidated Financial Statements

(Unaudited)

November 4, 2007

(tabular amounts expressed in thousands of Canadian dollars, unless otherwise noted)



|2 | Long-term debt
|- | --------------

Long-term debt consists of the
following:



|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                         |  |                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------- |  | ----------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | As atNovember 4, 2007 $ |  | As atFebruary 4,2007 $
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                         |  | (audited)             
|Senior subordinated notes (US$200,000,000), maturing in August 2012, bearing interest at 87/8%, payable semi-annually commencing in February 2006                                                                                                                                                                                                                                                                                                         |  | 186,840                 |  | 237,100               
|Term bank loan (US$239,802,407; February 4, 2007  US$241,628,318), maturing in November 2011, repayable in quarterly capital
installments of US$608,637. Advances under the term bank loan bear interest at rates ranging from 0.75% to 1.0% above the banks prime rate. However, borrowings under the term bank loan by way of LIBOR loans bear interest at rates ranging from
1.75% to 2.0% per annum above the banks LIBOR                          |  | 224,024                 |  | 286,450               
|Term bank loan, maturing in May 2010, repayable in quarterly capital installments varying from $1,500,000 to $7,500,000 commencing in April
2005. Advances under the term bank loan bear interest at rates varying from 0.75% to 1.25% per annum above the banks prime rate. However, borrowings under the term bank loan by way of bankers acceptances bear interest at rates
varying from 1.75% to 2.25% per annum above the bankers acceptance rate |  | 81,890                  |  | 88,000                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                         |  |                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 492,754                 |  | 611,550               
|Less: Current portion                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | 24,097                  |  | 13,496                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                         |  |                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 468,657                 |  | 598,054               
|Less: Deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                            |  | 14,016                  |  | 19,988                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                         |  |                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | 454,641                 |  | 578,066               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                         |  |                       



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Dollarama Group L.P.

Notes to Interim Consolidated Financial Statements

(Unaudited)

November 4, 2007

(tabular amounts expressed in thousands of Canadian dollars, unless otherwise noted)



|3 | Commitments and contingencies
|- | -----------------------------

As at
November 4, 2007, there were contractual obligations for operating leases amounting to approximately $417,557,000. The leases extend over various periods up to the year 2023, and it is expected that in the normal course of operations most will
be renewed under option clauses or will be renegotiated.

The basic annual rent, exclusive of contingent rentals, for the next five years
and thereafter is as follows:



|           |  |        
|---------- |  | -------
|           |  | $      
|2008       |  | 57,324 
|2009       |  | 53,780 
|2010       |  | 50,812 
|2011       |  | 47,646 
|2012       |  | 43,298 
|Thereafter |  | 164,697

A legal proceeding has been instituted against the Partnership for alleged copyright infringement
pertaining to the sale of certain products. The Partnership has denied this claim and believes it is without merit. It is not possible at this time to determine the outcome of this matter and accordingly, no provision has been made in the accounts
for this claim.

Legal proceedings have been instituted against the Partnership for alleged personal injuries sustained by customers in the
Partnerships stores. The plaintiffs are claiming amounts totalling $7,400,000. The Partnership believes that the potential amount to be paid for these claims would be covered by its insurance policies, other than punitive damage. It is not
possible at this time to determine the outcome of these matters and accordingly, no provision has been made in the accounts for these claims.

The Partnership believes that these suits are without substantial merit and should not result in judgments which in aggregate would have a material adverse effect on its financial statements.



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Dollarama Group L.P.

Notes to Interim Consolidated Financial Statements

(Unaudited)

November 4, 2007

(tabular amounts expressed in thousands of Canadian dollars, unless otherwise noted)



|4 | Derivative financial instruments
|- | --------------------------------

The fair value of
derivative financial instruments is as follows:



|                                                       |  |                        |   |  |                        |   |  |                            |  |                              
|------------------------------------------------------ |  | ---------------------- | - |  | ---------------------- | - |  | -------------------------- |  | -----------------------------
|                                                       |  |                        |   |  | Fair value             |   |  |                            |  |                              
|                                                       |  | As atNovember 4,2007 $ |   |  | As atFebruary 4,2007 $ |   |  | Qualifyfor hedgeaccounting |  | Nature of hedgingrelationship
|Foreign currency and interest rate swaps               |  | (66,904                | ) |  | (6,011                 | ) |  | No                         |  |                             
|Foreign exchange forward contracts                     |  | (27,992                | ) |  | 7,224                  |   |  | Yes                        |  | Cash flow hedge              
|Foreign currency swap agreements                       |  | (55,090                | ) |  | (6,398                 | ) |  | Yes                        |  | Cash flow hedge              
|                                                       |  |                        |   |  |                        |   |  |                            |  |                              
|                                                       |  | (149,986               | ) |  | (5,185                 | ) |  |                            |  |                              
|                                                       |  |                        |   |  |                        |   |  |                            |  |                              
|Derivative financial instruments  current assets      |  |                       |   |  | 7,224                  |   |  |                            |  |                              
|Derivative financial instruments  current liabilities |  | (149,986               | ) |  | (12,409                | ) |  |                            |  |                              
|                                                       |  |                        |   |  |                        |   |  |                            |  |                              
|                                                       |  | (149,986               | ) |  | (5,185                 | ) |  |                            |  |                              
|                                                       |  |                        |   |  |                        |   |  |                            |  |                              



|5 | Stock-based compensation
|- | ------------------------

Dollarama Capital
Corporation (DCC), a parent company of the Partnership, adopted a management option plan (the Plan) whereby managers, directors and employees of the Partnership may be granted stock options to acquire shares of DCC. The
number and characteristics of stock options granted are determined by the Board of DCC, and the options will have a life not exceeding 10 years.

An option on the Class B common shares must be exercised in combination with 2.86 options on the Class B preferred shares (referred to as a Combined Option).



|                               |  |                                       |   |  |                                          |   |  |            |   |  |             |  
|------------------------------ |  | ------------------------------------- | - |  | ---------------------------------------- | - |  | ---------- | - |  | ----------- | -
|                               |  | Number of Class Bcommon share options |   |  | Number of Class Bpreferred share options |  
|                               |  | Service                               |   |  | Performance                              |   |  | Service    |   |  | Performance |  
|Outstanding January 31, 2006  |  | 1,954,167                             |   |  | 3,908,334                                |   |  | 3,906,280  |   |  | 7,812,560   |  
|Effect of the equalization     |  | (1,340,236                            | ) |  | (2,680,472                               | ) |  | (2,153,618 | ) |  | (4,307,236  | )
|                               |  |                                       |   |  |                                          |   |  |            |   |  |             |  
|Outstanding  February 4, 2007 |  | 613,931                               |   |  | 1,227,862                                |   |  | 1,752,662  |   |  | 3,505,324   |  
|Granted                        |  | 266,491                               |   |  | 532,982                                  |   |  | 760,800    |   |  | 1,521,600   |  
|                               |  |                                       |   |  |                                          |   |  |            |   |  |             |  
|Outstanding  November 4, 2007 |  | 880,422                               |   |  | 1,760,844                                |   |  | 2,513,462  |   |  | 5,026,924   |  
|                               |  |                                       |   |  |                                          |   |  |            |   |  |             |  
|Exercisable  November 4, 2007 |  | 399,250                               |   |  |                                         |   |  | 1,139,784  |   |  |            |  
|                               |  |                                       |   |  |                                          |   |  |            |   |  |             |  



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Dollarama Group L.P.

Notes to Interim Consolidated Financial Statements

(Unaudited)

November 4, 2007

(tabular amounts expressed in thousands of Canadian dollars, unless otherwise noted)



|6 | Related party transactions
|- | --------------------------

Included in expenses
are management fees of $2,375,100 for the 39-week period ended November 4, 2007 (for the nine-month period ended October 31, 2006  $2,311,000) charged by an affiliate of Bain Capital Partners VIII, LP, the private equity firm
that controls the Partnerships parent. Included in expenses are management fees of $784,000 for the 13-week period ended November 4, 2007 (for the three-month period ended October 31, 2006  $767,000) charged by an
affiliate of Bain Capital Partners VIII, LP.

Expenses charged by related parties, which mainly comprise rent, total $4,944,000 for the
39-week period ended November 4, 2007 (for the nine-month period ended October 31, 2006  $5,435,000). Expenses charged by related parties, which mainly comprise rent, total $1,659,000 for the 13-week period ended
November 4, 2007 (for the three-month period ended October 31, 2006  $2,035,000).

Included in accrued expenses and
other is $1,140,000 as at November 4, 2007 (as at October 31, 2006  $1,142,000) payable to Bain Capital Partners VIII, LP.

These transactions were measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.



|7 | Comparative figures
|- | -------------------

Certain comparative figures
have been reclassified to conform with the basis of presentation used in the current period.



|8 | Reconciliation of accounting principles generally accepted in Canada and the United States
|- | ------------------------------------------------------------------------------------------

The Partnership has prepared these unaudited interim consolidated financial statements in accordance with Canadian GAAP, which conform in all material
respects to those in the United States.



|9 | Supplemental condensed consolidating financial information
|- | ----------------------------------------------------------

In connection with the issuance of the Partnerships senior subordinated notes (the Notes), all of its wholly owned subsidiaries have provided guarantees for the Notes. Dollarama Group L.P. (the Parent) does not
have any independent assets or operations, and the guarantees provided by the subsidiaries are full and unconditional as well as joint and several. The subsidiaries are not subject to restrictions on their ability to distribute earnings to the
Partnership



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##### Table of Contents

Dollarama Group L.P.

Notes to Interim Consolidated Financial Statements

(Unaudited)

November 4, 2007

(tabular amounts expressed in thousands of Canadian dollars, unless otherwise noted)



|10 | Restatement to the consolidated statement of cash flows
|-- | -------------------------------------------------------

The consolidated statement of cash flows for the three-month and nine-month periods ended October 31, 2006 have been restated to correct presentation errors. The statement as previously reported showed deferred leasing costs and tenant
allowances under investing activities and unrealized foreign exchange gain on the long-term debt as foreign currency translation adjustment, shown as a separate caption on the statement. These items were reclassified under cash flows from operating
activities. The table below summarizes the impact of the reclassifications on the operating, investing and financing cash flows for the three- and nine-month periods ended October 31, 2006. No other statement was impacted by these
reclassifications.



|                                        |  |                                                  |   |  |                                                 |   |  |           |   |  |                      |   |  |                   |   |  |           |  
|--------------------------------------- |  | ------------------------------------------------ | - |  | ----------------------------------------------- | - |  | --------- | - |  | -------------------- | - |  | ----------------- | - |  | --------- | -
|                                        |  | For the three-month period endedOctober 31, 2006 |   |  | For the nine-month period endedOctober 31, 2006 |  
|                                        |  | Previouslyreported $                             |   |  | Reclassification$                               |   |  | Amended $ |   |  | Previouslyreported $ |   |  | Reclassification$ |   |  | Amended $ |  
|Cash flows from operating activities    |  | 4,086                                            |   |  | (864                                            | ) |  | 3,222     |   |  | 61,242               |   |  | (547              | ) |  | 60,695    |  
|Cash flows from investing activities    |  | (11,709                                          | ) |  | (836                                            | ) |  | (12,545   | ) |  | (29,801              | ) |  | (2,633            | ) |  | (32,434   | )
|Cash flows from financing activities    |  | (22,019                                          | ) |  |                                                |   |  | (22,019   | ) |  | (32,277              | ) |  |                  |   |  | (32,277   | )
|Foreign currency translation adjustment |  | (1,700                                           | ) |  | 1,700                                           |   |  |          |   |  | (3,180               | ) |  | 3,180             |   |  |          |  
|                                        |  |                                                  |   |  |                                                 |   |  |           |   |  |                      |   |  |                   |   |  |           |  
|Increase (decrease) in cash equivalents |  | (31,342                                          | ) |  |                                                |   |  | (31,342   | ) |  | (4,016               | ) |  |                  |   |  | (4,016    | )
|                                        |  |                                                  |   |  |                                                 |   |  |           |   |  |                      |   |  |                   |   |  |           |  



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##### Table of Contents

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and accompanying notes thereto appearing in this report along with the
consolidated financial statements for the fiscal year ended February 4, 2007 and related notes and Managements Discussion and Analysis presented in our Annual Report on Form 10-K/A. Any references to we, us and
our refer to Dollarama Group L.P. and Dollarama Corporation.

Our functional and reporting currency is the Canadian
dollar. Financial data has been prepared in conformity with Generally Accepted Accounting Principles (GAAP) in Canada. Certain measures used in this discussion and analysis do not have any standardized meaning under Canadian GAAP. When
used, these measures are defined in such terms as to allow the reconciliation to the closest Canadian GAAP measure. It is unlikely that these measures could be compared to similar measures presented by other companies.

Accounting Periods

On February 1, 2007, we
changed our fiscal year end from January 31 to February 4, 2007 for fiscal year 2007 and to a floating year ending on the Sunday closest to January 31 for all subsequent fiscal years. We decided to change the year end date of our
fiscal year 2007 to February 4, 2007 even though it is not the Sunday closest to January 31 because, as is traditional with the retail calendar, every 5 to 6 years, a week is added to the retail calendar. The week ended February 4,
2007 is therefore equivalent to our 53rd week in the retail calendar, leaving the 53rd week year behind us and the rest of our fiscal year end dates to fall on the Sunday closest to January 31. Our fiscal year 2008 began February 5, 2007
and will end February 3, 2008. There is one less day of transactions included in the 13-week period ended November 4, 2007 when compared to the three-month period ended October 31, 2006. There are an equal number of days in the
39-week period ended November 4, 2007 when compared to the nine-month period ended October 31, 2006.

Forward-Looking Statements

Except for historical information contained herein, the statements in this document are forward-looking. Forward-looking statements
involve known and unknown risks and uncertainties, including those that are described elsewhere in this report. Such risks and uncertainties may cause actual results in future periods to differ materially from forecasted results. Those risks
include, among others, changes in customer demand for products, changes in raw material and equipment costs and availability, seasonal changes in customer demand, pricing actions by competitors and general changes in economic conditions.

Overview

We are the leading operator of dollar
discount stores in Canada with stores in each province. Based on our internal review of publicly available information, we believe that we have more than 2.5 times the number of stores as our next largest competitor in Canada. Our core markets are
Ontario and Québec. As at November 4, 2007, we operated 505 Dollarama stores, including 388 stores located in Ontario and Québec. Our stores offer a varied mix consisting of both consumables and semi-durables, which are sold
mainly in individual or multiple units primarily at a price of $1.00. We have a well diversified supply base, sourcing our merchandise from both domestic and foreign suppliers. All of our stores are company-operated, and nearly all are located in
high-traffic areas such as strip malls and shopping centers in metropolitan areas, mid-sized cities, or small towns.

Our strategy is to
grow our sales, net earnings and cash flow by building upon our position as the leading Canadian operator of dollar stores and continuing to offer a compelling value proposition on a wide variety of everyday merchandise to a broad base of shoppers.
As a result, we continually strive to maintain and improve the efficiency of our operations.

Factors Affecting Our Results of Operations

Sales

We
recognize sales at the time the customer tenders payment for and takes possession of the merchandise. All sales are final. Our sales consist of comparable store sales and new store sales. Comparable store sales is a measure of the percentage
increase or decrease of the sales of stores open for at least 13 complete months relative to the same period in the prior year. We measure comparable store sales over periods containing an integral number of weeks, beginning on a Monday and ending
on a Sunday. We include sales from relocated stores and expanded stores in comparable store sales.



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The primary drivers of comparable store sales performance are changes in store traffic and the average number of items purchased by customers per visit. To
increase comparable store sales, we try to offer a wide selection of merchandise that offer high quality and good value at attractive and well-maintained updated store formats, in convenient locations.

We have historically experienced seasonal fluctuations in our sales and expect this trend to continue. We generated 31.1% of our sales in fiscal year
ended February 4, 2007 during the fourth quarter due to the holiday selling season. In anticipation of increased sales activity during the fourth quarter, we typically purchase substantial amounts of inventory and hire a significant number of
temporary employees to supplement our permanent store and warehouse staffs.

Our sales are adversely affected by inflation and other
adverse economic developments that affect the level of consumer spending in Canada where we sell our merchandise.

Cost of Sales

Our cost of sales consists of merchandise inventories (which are variable and proportional to our sales volume), and procurement
and warehousing costs (including occupancy and labor costs) and store rent and occupancy costs, which are predominantly fixed costs. We record vendor rebates consisting of volume purchase rebates, when earned. The rebates are recorded as a reduction
of cost of sales. As a fixed price retailer, increases in operating and merchandise costs could negatively impact our operating results because we generally do not pass on cost increases to our customers. We may be able to redesign some of our
direct sourced products to attempt to mitigate the impact of increasing unit costs.

We have historically reduced our cost of sales by
shifting more of our sourcing to low-cost foreign suppliers. For the fiscal year ended February 4, 2007, the direct foreign sourcing was 53.1% of our purchases compared to 52.6% for the fiscal year ended January 31, 2006. We purchase
merchandise from foreign suppliers mainly in China, but also from Denmark, France, Hong Kong, India, Indonesia, Italy, Malaysia, Panama, the Philippines, Taiwan, Turkey, and the United States. As a result, our cost of sales is impacted by the
fluctuation of foreign currencies against the Canadian dollar. In particular, we purchase a majority of our imported merchandise from suppliers in China using U.S. dollars. Therefore, our cost of sales is impacted by the fluctuation of the Chinese
renminbi against the U.S. dollar and the fluctuation of the U.S. dollar against the Canadian dollar. While we enter into forward contracts to hedge part of our exposure to fluctuations in the value of the U.S. dollar against the Canadian dollar, we
do not hedge our exposure to fluctuations in the value of the Chinese renminbi against the U.S. dollar.

Our occupancy costs are driven by
our base rent expense. We believe that we are generally able to negotiate leases at market terms due to the increased consumer traffic which our stores usually generate in strip malls and shopping centers. We typically enter into leases with terms
of between five and ten years with options to renew for one or more periods of five years each.

Shipping and transportation costs are also
a significant component of our cost of sales. When fuel costs increase, shipping and transportation costs increase because the carriers generally pass on such cost increases to the users. Because of the risk of continued increases in fuel costs in
fiscal year 2008, we expect increased fuel surcharges from our contract carriers as compared with past quarters. Our cost of sales is also affected by general inflation in costs of merchandise and costs of certain commodities relating to raw
materials used in our products. During the last three fiscal years, the negative impact of these cost increases on our product margins has been offset primarily by the favorable foreign currency fluctuations, specifically the relative strengthening
of the Canadian dollar against the U.S. dollar.

General, Administrative and Store Operating Expenses

Our general, administrative and store operating expenses consist of store labor and maintenance costs such as repair costs, which are primarily fixed, and
salaries and related benefits of corporate team members, administrative office expenses, professional expenses and other related expenses. Although our average hourly wage rate is higher than the minimum wage, an increase in the mandated minimum
wage could significantly increase our payroll costs unless we realize offsetting productivity gains and cost reductions. We expect our administrative costs to increase as we build our infrastructure to effectively meet the needs generated by the
growth of our company. Administrative and general expenses also include management fees of up to $3.0 million per year plus expenses to be paid pursuant to a management agreement with Bain Capital Partners, LLC.

Economic or Industry-Wide Factors Affecting the Company

We operate in the Canadian discount retail merchandise business, which is highly competitive with respect to price, store location, merchandise quality, assortment and presentation, in-stock consistency, and customer
service. We compete



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with discount stores and with many other retailers, including mass merchandise, grocery, drug, convenience, variety and other specialty stores. These other
retail companies operate stores in many of the areas where we operate and many of them engage in extensive advertising and marketing efforts. Additionally, we compete with a number of companies for prime retail site locations, as well as in
attracting and retaining quality employees. We, along with other retail companies, are influenced by a number of factors including, but not limited to: cost of goods, consumer debt levels and buying patterns, economic conditions, interest rates,
customer preferences, unemployment, labor costs, inflation, currency exchange fluctuations, fuel prices, weather patterns, catastrophic events, competitive pressures and insurance costs.

Critical Accounting Policies

In preparing our financial statements, management is required to make
estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the period. We
evaluate our estimates on an ongoing basis, based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates.

Valuation of Merchandise Inventories

The valuation of store merchandise inventories is determined by the retail inventory method valued at the lower of cost (weighted-average) or market. Under the retail inventory method, merchandise inventories are converted to a cost basis
by applying an average cost to selling ratio. Merchandise inventories that are at the distribution center or warehouses and inventories that are in-transit from suppliers, are stated at the lower of cost and market, determined on a weighted-average
cost basis. Merchandise inventories include items that have been marked down to managements best estimate of their net realizable value and are included in cost of sales in the period in which the markdown is determined. We estimate our
markdown reserve based on the consideration of a variety of factors, including but not limited to quantities of slow-moving or carryover seasonal merchandise on hand, historical markdown statistics and future merchandising plans. The accuracy of our
estimates can be affected by many factors, some of which are outside of our control, including changes in economic conditions and consumer buying trends. Historically, we have not experienced significant differences in our estimates of markdowns
compared with actual results.

Property and Equipment

Property and equipment are carried at cost. Property and equipment are amortized over the estimated useful lives of the respective assets as follows:
(i) on the declining balance method, computer equipment and vehicles at 30%; and (ii) on the straight-line method, store and warehouse equipment at 8 to 10 years, computer software at 5 years and leasehold improvements at the terms of the
lease. Property and equipment are reviewed for impairment periodically and whenever events or changes in circumstances indicate that the carrying value of an asset might not be recoverable.

Goodwill and Trade Name

Goodwill and trade name are not subject to amortization and are tested for impairment annually or more frequently if events or circumstances indicate that the assets might be impaired. Impairment is identified by comparing the fair value of
the reporting unit to which it relates to its carrying value. To the extent a reporting units carrying amount exceeds its fair value, we measure the amount of impairment in a manner similar to that of a purchase price allocation, and any
excess of carrying amount over the implied fair value of goodwill is charged to earnings in the period in which the impairment is determined. Future events could cause us to conclude that impairment indicators exist and that goodwill associated with
our business is impaired. Any resulting impairment would be charged to net earnings.

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an
asset may not be recoverable. Factors which we consider could trigger an impairment review include, but are not limited to, the following: (i) significant negative industry or economic trends; and (ii) current, historical or projected
losses that demonstrate continuing losses. Impairment is assessed by comparing the carrying amount of an asset with the expected future net undiscounted cash flows from its use together with its residual value. If such assets are considered to be
impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. The estimates regarding their fair value include assumptions about future conditions relating to our business,
as well as the industry. If actual cash flows differ from those projected by management, additional write-offs may be required.



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Operating Leases

We recognize
rental expense and inducements received from landlords on a straight-line basis over the term of the leases. Any difference between the calculated expense and the amounts actually paid is reflected as deferred lease inducements on our balance sheet.
We recognize contingent rental expense when the achievement of the specified sales targets is considered probable. Our estimates are based on individual store sales trends and are adjusted for actual results.

Financial Instruments

Fair
market value of financial instruments

We estimate the fair market value of our financial instruments based on current interest rates,
market value and current pricing of financial instruments with similar terms. Unless otherwise disclosed herein, the carrying value of these financial instruments, especially those with current maturities such as cash and cash equivalents, accounts
receivable, deposits, accounts payable and accrued expenses, approximates their fair market value.

Derivative financial instruments

We use derivative financial instruments in the management of our foreign currency and interest rate exposures. When hedge accounting is
used, we document relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking various hedge transactions. This process includes linking derivatives to specific assets and
liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess whether the derivatives that are used in hedging transactions are effective in offsetting changes in cash flows of hedged items.

Foreign exchange forward contracts

We have significant expenses and long-term debt denominated in U.S. dollars. We use foreign exchange forward contracts and foreign currency swap agreements to mitigate risks from fluctuations in exchange rates. All forward contracts and
foreign currency swap agreements are used for risk management purposes and are designated as hedges of specific anticipated purchases.

Swaps

Our interest rate risk is primarily in relation to our fixed rate and floating rate borrowings. We have entered into
swap agreements to mitigate this risk.

Others

In the event a derivative financial instrument designated as a hedge is terminated or ceases to be effective prior to maturity, related realized and unrealized gains or losses are deferred under current assets or
liabilities and recognized in earnings in the period in which the underlying original hedged transaction is recognized. In the event a designated hedged item is sold, extinguished or matures prior to the termination of the related derivative
financial instrument, any realized or unrealized gain or loss on such derivative financial instrument is recognized in earnings.

Derivative financial instruments which are not designated as hedges or have ceased to be effective prior to maturity are recorded at their estimated fair values under current assets or liabilities with changes in their estimated fair values
recorded in earnings. Estimated fair value is determined using pricing models incorporating current market prices and the contractual prices of the underlying instruments, the time value of money and yield curves.

Monetary assets and liabilities denominated in foreign currencies are translated at period-end exchange rates, while non-monetary assets and liabilities
are translated at historic rates. Revenues and expenses are translated at prevailing market rates in the recognition period. The resulting exchange gains or losses are recorded in the statement of earnings, except for gains or losses on foreign
exchange contracts used to hedge anticipated purchases in foreign currencies. Gains and losses on these contracts are accounted for as a separate component of partners capital in other comprehensive income. Such gains or losses are recorded in
income when the inventories are sold.



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##### Table of Contents

Results of Operations

13-Week Period Ended November 4, 2007 Compared to Three-Month Period Ended October 31, 2006

The following
table sets forth the major components of our consolidated statements of operations, expressed as a percentage of sales, for the periods indicated:



|                                                                                    |  |                                   |   |  |                                         |   
|----------------------------------------------------------------------------------- |  | --------------------------------- | - |  | --------------------------------------- | --
|                                                                                    |  | 13-WeekPeriodEndedNovember 4,2007 |   |  | Three-Month PeriodEndedOctober 31, 2006 |   
|Sales                                                                               |  | 100.0                             | % |  | 100.0                                   | % 
|Cost of sales                                                                       |  | 66.4                              | % |  | 67.5                                    | % 
|General administrative and store operating expenses                                 |  | 19.1                              | % |  | 17.1                                    | % 
|Amortization                                                                        |  | 1.9                               | % |  | 1.6                                     | % 
|Amortization of deferred financing costs                                            |  | 0.5                               | % |  | 0.5                                     | % 
|Interest expense                                                                    |  | 4.5                               | % |  | 5.5                                     | % 
|Foreign exchange loss (gain) on derivative financial instruments and long-term debt |  | 0.7                               | % |  | (0.3                                    | )%
|Taxes                                                                               |  | 0.0                               | % |  | 0.2                                     | % 
|Net earnings                                                                        |  | 6.9                               | % |  | 8.0                                     | % 

Sales

Our sales increased $23.4 million, or 10.7%, from $218.5 million for the three-month period ended October 31, 2006, to $241.9 million for the 13-week period ended November 4, 2007. This sales growth was
driven primarily by the opening of 57 new stores for the 52 week period ended November 4, 2007 which accounted for approximately $21.2 million or 90.7% of the sales increase and offset by the temporary closure of 3 stores during the same
period, and the incremental full 13-week effect of the stores opened during the three-month period ended October 31, 2006. The sales growth was offset by a decrease in comparable store sales of 0.3% or $0.5 million for the 13-week period ended
November 4, 2007, and one less day of transactions in the 13-week period ended November 4, 2007 compared with the three-month period ended October 31, 2006. Our total store square footage increased 14.0% from 4.25 million as at
October 31, 2006 to 4.84 million as at November 4, 2007.

Cost of Sales

Cost of sales increased $13.2 million, or 8.9%, from $147.5 million for the three-month period ended October 31, 2006 to $160.7 million for the
13-week period ended November 4, 2007. Our margin (sales less cost of sales) increased from 32.5% for the three-month period ended October 31, 2006 to 33.6% for the 13-week period ended November 4, 2007. The improvement in our margin
was driven mainly by favorable foreign exchange rates and was partially offset by higher product costs from China, higher fuel costs and higher costs related to our expansion to western Canada. Since most of our products are distributed from our
distribution center located in eastern Canada, our western expansion results in higher transportation costs.

General, Administrative
and Store Operating Expenses

General, administrative and store operating expenses increased $8.8 million, or 23.4%, to $46.2 million
for the 13-week period ended November 4, 2007 from $37.4 million for the three-month period ended October 31, 2006. This increase was due to a greater number of stores in operation, higher wages resulting from minimum wage increases and
additional costs related to the infrastructure required to support the development and added activities of our head office. In addition, during the 13-week period ended November 4, 2007, we retained the services of consultants to assist us in
performing an extensive market study and in our Sarbanes-Oxley Act certification process. As a percentage of sales, general, administrative and store operating expenses represented 19.1% for the 13-week period ended November 4, 2007 compared
with 17.1% for the same period last year.



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Amortization

Amortization expense increased $1.2 million from $3.4 million for the three-month period ended October 31, 2006 to $4.6 million for the 13-week period ended November 4, 2007. This increase was due mainly to
the amortization of property and equipment resulting from the new store openings and the amortization of part of our upgraded information technology systems due to the upgrade of our systems.

Amortization of Deferred Financing Costs

Amortization of deferred financing costs was $1.1 million for the 13-week period ended November 4, 2007 and $1.0 million for the three-month period ended October 31, 2006. The amortization of deferred costs represents the cost of
the new financing described in Liquidity and Capital ResourcesDebt and Commitments, which is amortized over the term of the related debt.

Interest Expense

Interest expense decreased $1.1 million from $12.0 million for the three-month
period ended October 31, 2006 to $10.9 million for the 13-week period ended November 4, 2007 due mainly to a lower level of debt.

Foreign Exchange Loss on Derivative Financial Instruments and Long-Term Debt

Foreign exchange loss on derivative financial
instruments and long-term debt increased $2.5 million from a $0.7 million gain for the three-month period ended October 31, 2006, to a $1.8 million loss for the 13-week period ended November 4, 2007, due mainly to the difference in
exchange rate.

Income Taxes

Due to a phase out of large corporations tax, income tax expense decreased from $0.4 million for the three-month period ended October 31, 2006 to $0.1 million for the 13-week period ended November 4, 2007. Net earnings for
the three-month period ended October 31, 2006 and the 13-week period ended November 4, 2007 constituted income of our partners and are therefore mainly subject to income tax in their hands. Income taxes recorded in such periods represent the
large corporations tax and nominal income taxes paid by our subsidiary companies.

Net Earnings

Net earnings decreased $0.8 million, from $17.4 million for the three-month period ended October 31, 2006, to $16.6 million for the 13-week period
ended November 4, 2007.

39-Week Period Ended November 4, 2007 Compared to Nine-Month Period Ended October 31, 2006

The following table sets forth the major components of our consolidated statements of operations, expressed as a percentage of
sales, for the periods indicated:



|                                                                             |  |                                   |   |  |                                       |   
|---------------------------------------------------------------------------- |  | --------------------------------- | - |  | ------------------------------------- | --
|                                                                             |  | 39-WeekPeriodEndedNovember 4,2007 |   |  | Nine-Month PeriodEndedOctober 31,2006 |   
|Sales                                                                        |  | 100.0                             | % |  | 100.0                                 | % 
|Cost of sales                                                                |  | 66.3                              | % |  | 67.6                                  | % 
|General administrative and store operating expenses                          |  | 19.0                              | % |  | 17.6                                  | % 
|Amortization                                                                 |  | 1.9                               | % |  | 1.5                                   | % 
|Amortization of deferred financing costs                                     |  | 0.5                               | % |  | 0.5                                   | % 
|Interest expense                                                             |  | 4.7                               | % |  | 5.8                                   | % 
|Foreign exchange loss on derivative financial instruments and long-term debt |  | 0.5                               | % |  | (0.1                                  | )%
|Taxes                                                                        |  | 0.0                               | % |  | 0.2                                   | % 
|Net earnings                                                                 |  | 7.1                               | % |  | 7.0                                   | % 



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Sales

Our sales increased $79.4 million, or 13.0%, from $611.6 million for the nine-month period ended October 31, 2006, to $691.0 million for the 39-week period ended November 4, 2007. This sales growth was
driven primarily by the opening of 57 new stores for the 52 week period ended November 4, 2007 which accounted for approximately $44.7 million or 56.3% of the sales increase and offset by the temporary closure of 3 stores during the same
period, the incremental full 39-week effect of the stores opened during the nine-month period ended October 31, 2006 which contributed approximately $38.9 million or 49.0% of the sales increase and offset by a comparable store sales decrease.

Comparable store sales decreased 0.7% or $4.3 million for the 39-week period ended November 4, 2007. We attribute this decrease
partly to the start-up of our new ERP (Enterprise Resource Planning) system. At the early stage of this implementation, the store replenishment process was delayed as we adjusted to our new system. The situation was corrected during the second
quarter.

Cost of Sales

Cost of sales increased $44.9 million, or 10.9%, from $413.2 million for the nine-month period ended October 31, 2006 to $458.1 million for the 39-week period ended November 4, 2007. Our margin (sales less cost of sales) increased
from 32.4% for the nine-month period ended October 31, 2006 to 33.7% for the 39-week period ended November 4, 2007. The improvement in our margin was driven mainly by favorable foreign exchange rates and was partially offset by higher
product costs from China, higher fuel costs and higher costs related to our expansion to western Canada . Since most of our products are distributed from our distribution center located in eastern Canada, our western expansion results in higher
transportation costs.

General, Administrative and Store Operating Expenses

General, administrative and store operating expenses increased $23.6 million, or 22.0%, to $131.0 million for the 39-week period ended November 4,
2007 from $107.4 million for the nine-month period ended October 31, 2006. This increase was due to a greater number of stores in operation, higher wages resulting from minimum wage increases and additional costs related to the infrastructure
required to support the development and added activities of our head office. In addition, during the 39-week period ended November 4, 2007, we retained the services of consultants to assist us in performing an extensive market study and in our
Sarbanes-Oxley Act certification process. As a percentage of sales, general, administrative and store operating expenses represented 19.0% for the 39-week period ended November 4, 2007, compared with 17.6% for the same period last year.

Amortization

Amortization expense increased $3.7 million from $9.2 million for the nine-month period ended October 31, 2006 to $12.9 million for the 39-week period ended November 4, 2007. This increase was due to the amortization of property
and equipment resulting from the new store openings and the amortization of part of our upgraded information technology systems due to the upgrade of our systems.

Amortization of Deferred Financing Costs

Amortization of deferred financing costs was $3.2 million
for the 39-week period ended November 4, 2007 and $3.1 million for the nine-month period ended October 31, 2006. The amortization of deferred costs represents the cost of the new financing described in Liquidity and Capital
ResourcesDebt and Commitments, which is amortized over the term of the related debt.

Interest Expense

Interest expense decreased $2.6 million from $35.3 million for the nine-month period ended October 31, 2006 to $32.7 million for the 39-week period
ended November 4, 2007 due mainly to a lower level of debt.

Foreign Exchange Loss on Derivative Financial Instruments and
Long-Term Debt

Foreign exchange loss on derivative financial instruments and long-term debt increased $4.3 million from a gain of $0.7
for the nine-month period ended October 31, 2006, to a $3.6 million loss for the 39-week period ended November 4, 2007, due mainly to the difference in exchange rate.



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Income Taxes

Due to a phase out of large corporations tax, income tax expense decreased from $1.3 million for the nine-month period ended October 31, 2006 to $0.3 million for the 39-week period ended November 4,
2007. Net earnings for the nine-month period ended October 31, 2006 and the 39-week period ended November 4, 2007 constitute income of our partners and are therefore mainly subject to income tax in their hands. Income taxes recorded in such
periods represent the large corporations tax and nominal income taxes paid by our subsidiary companies.

Net Earnings

Net earnings increased $6.3 million, from $42.8 million for the nine-month period ended October 31, 2006, to $49.1 million for the
39-week period ended November 4, 2007.

Liquidity and Capital Resources

Cash Flows

Our cash position
decreased $25.1 million from $26.9 million as at October 31, 2006 to $1.8 as at November 4, 2007. The cash flows provided by or used in operating activities, investing activities and financing activities during the 13-week and 39-week
periods ended November 4, 2007 and the three-month and nine-month periods ended October 31, 2006 are discussed below.

Operating Activities

Cash flows provided by operating activities were $15.7 million in the 13-week period ended
November 4, 2007 and cash flows provided by operating activities were $21.4 million in the 39-week period ended November 4, 2007, compared to cash flows provided by operating activities of $3.2 million and $60.7 million, respectively, in
the corresponding periods of fiscal 2007. The increase in cash provided in the 13-week period ended November 4, 2007 compared to the three-month period ended October 31, 2006 is mainly due to a lower increase in inventory. While the
decrease in cash flow provided by operating activities in the 39-week period ended November 4, 2007 compared to the nine-month period ended October 31, 2006 is mainly due a greater increase in inventory offset by a decrease in accounts
payable. Both inventory and accounts payable are classified as non-cash working capital from operating activities.

Investing Activities

Cash flows used in investing activities were $14.2 million in the 13-week period ended November 4, 2007 and $34.1 million in the
39-week period ended November 4, 2007 versus $12.5 million in the three-month period ended October 31, 2006 and $32.4 million in the nine-month period ended October 31, 2006. These investing requirements were due primarily to the
acquisition of property and equipment related to new stores opened, the renovation, expansion and relocation of existing stores, improvements to information systems, an increase in warehouse capacity in the greater Montréal area, and
preparation for our move to a new head office. 19 stores opened during the 13-week period ended November 4, 2007 versus 20 stores opened and one store closure during the three-month period ended October 31, 2006.

Financing Activities

Cash flows used
in financing activities were $12.3 million mainly due to repayment of the revolver in the 13-week period ended November 4, 2007 and $33.1 million in the 39-week period ended November 4, 2007 versus $22.0 million in the three-month period
ended October 31, 2006 and $32.3 million in the nine-month period ended October 31, 2006 respectively. The main reason for the increase in cash flow required was for capital distribution of U.S.$26.0 million for the repayment of U.S.$15.0
million in principal amount and the payment of U.S.$11.0 million in interest by Dollarama Group Holdings L.P. These payments were made in compliance with our existing loan covenants.

Debt and Commitments

We are
and will continue to be significantly leveraged. Our principal sources of liquidity have been cash flow generated from operations and borrowings under our senior secured credit facility. Our principal cash requirements have been for working capital,
capital expenditures and debt service. In connection with our 2004 acquisition of substantially all of the assets of S. Rossy Inc. and Dollar A.M.A. Inc. relating to the Dollarama business, we entered into the senior secured credit facility,
pursuant to which we incurred $120.0 million of term loan A borrowings and U.S.$201.3 million of term loan B borrowings ($240.0 million based on the exchange rate on the closing date of the acquisition), and the senior subordinated bridge loan
facility, pursuant to which we borrowed an aggregate of $240.0 million.



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On August 12, 2005, we issued U.S.$200.0 million senior subordinated notes bearing interest at
8.875% per annum payable semi annually and maturing in August 2012. We used the proceeds from the sale of these senior subordinated notes, together with additional term loan B borrowings of U.S.$45.0 million (approximately $42.0 million based
on the exchange rate on November 4, 2007) that we incurred pursuant to an amendment to our senior secured credit facility to, (i) repay the outstanding borrowings under the senior subordinated bridge loan facility, (ii) make a cash
distribution to Dollarama Capital Corporation, our parent, and (iii) pay related fees and expenses. At that time, the outstanding borrowings under the senior subordinated bridge loan including the accrued interest were $240.5 million bearing
interest at Canadian Bankers Acceptance rate plus 8.25% per annum and would have otherwise matured in May 2006.

As at
November 4 2007, we and our subsidiaries had approximately $305.9 million of senior secured debt outstanding, consisting of debt outstanding under our senior credit facility, and U.S.$200.0 million ($186.8 million based on exchange rate on
November 4, 2007) of senior subordinated debt outstanding, consisting of the 8.875% senior subordinated notes.

Our ability to make
scheduled payments of principal, or to pay the interest or additional interest, if any, on, or to refinance our indebtedness, or to fund planned capital expenditures will depend on our future performance, which to a certain extent, is subject to
general economic, financial, competitive, legislative, regulatory, or other factors that are beyond our control. Based upon the current level of our operations, we believe that cash flow from operations, together with borrowings available under our
senior secured credit facility, will be adequate to meet our future liquidity needs. Our assumptions with respect to future liquidity needs may not be correct and funds available to us from the sources described above may not be sufficient to enable
us to service our indebtedness, or cover any shortfall in funding for any unanticipated expenses.

Senior Secured Credit Facility
Our senior secured credit facility consists of a (i) $81.9 million term loan A facility maturing in May 2010, denominated in Canadian dollars; (ii) U.S.$239.8 million ($224.0 million based on the exchange rate on November 4, 2007)
term loan B facility maturing in November 2011, denominated in U.S. dollars; and (iii) $75.0 million revolving credit facility, denominated in Canadian dollars, which includes a $25.0 million letter of credit subfacility and a $10.0 million
swingline loan subfacility. In addition, we may, under certain circumstances and subject to receipt of additional commitments from existing lenders or other eligible institutions, request additional term loan tranches or increases to the revolving
loan commitments by an aggregate amount of up to $150.0 million (or the U.S. dollar equivalent thereof).

The interest rates per annum
applicable to the loans under our senior secured credit facility, other than swingline loans, equal an applicable margin percentage plus, at our option, (1) in the case of U.S. dollar denominated loans, (a) a U.S. base rate equal to the
greater of (i) the rate of interest per annum equal to the rate which Royal Bank of Canada establishes at its main office in Toronto from time to time as the reference rate of interest for U.S. dollar loans made in Canada and (ii) the
federal funds effective rate (converted to a rate based on a 365 or 366 day period, as the case may be) plus 1.0% per annum or (b) the rate per annum equal to the rate determined by Royal Bank of Canada to be the offered rate that appears
on the page of the Telerate screen 3750 that displays an average British Bankers Association Interest Settlement Rate for deposits in U.S. dollars for an interest period chosen by us of one, two, three, or six months (or, if available to all
applicable lenders, nine or twelve month periods) and (2) in the case of Canadian dollar denominated loans, a Canadian prime rate equal to the greater of (i) the rate of interest per annum equal to the rate which Royal Bank of Canada
establishes at its main office in Toronto from time to time as the reference rate for Canadian dollar loans made in Canada and (ii) the rate per annum determined as being the arithmetic average of the rates quoted for bankers acceptance
for the appropriate interest period as listed on the applicable Reuters Screen CDOR (Certificate of Deposit Offered Rate) page (plus 0.10% for certain lenders) plus 1.0% per annum.

The applicable margin percentage for Canadian dollar denominated loans is subject to adjustment based upon the level of the total lease-adjusted leverage
ratio. Initially, the applicable margins were 1.25% for Canadian prime rate loans and 2.25% for bankers acceptances. During the three months ended April 30, 2006, the total lease-adjusted leverage ratio level decreased the applicable
margin percentage for Canadian dollar denominated loans by 0.25% to 1.00% for Canadian prime rate loans and 2.00% for bankers acceptances, effective May 25, 2006. On the last day of each calendar quarter, we also pay a commitment fee
(calculated in arrears) to each revolving credit lender in respect of any unused commitments under the revolving credit facility, subject to adjustment based upon the level of our total lease-adjusted leverage ratio. Previously, the applicable
margin percentage was 2.25% for adjusted LIBOR rate loans and 1.25% for U.S. base rate loans. However, on May 25, 2006, the term B loan was amended. As a result, the margin percentage of 2.25% for adjusted LIBOR rate loans and 1.25% for U.S.
base rate loans was decreased by 0.25% to 2.00% for adjusted LIBOR rate loans and 1.00% for U.S. base rate loans. Upon reaching a lease-adjusted leverage ratio of less than 4.75:1, the margin percentage is further reduced by 0.25%.

Our senior secured credit facility contains a number of restrictive covenants that, subject to significant exceptions, limit our ability and the ability
of our restricted subsidiaries, to, among other things: make investments and loans; make capital expenditures; incur, assume, or permit to exist additional indebtedness, guarantees, or liens; engage in mergers, acquisitions, asset sales or
sale-leaseback transactions; declare dividends, make payments on, or redeem or repurchase equity interests;



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alter the nature of the business we conduct; engage in certain transactions with affiliates; enter into agreements limiting subsidiary distributions; and
prepay, redeem, or repurchase certain indebtedness including the notes.

Subject to exceptions, our senior secured credit facility requires
mandatory prepayments or offer to prepay (with the failure to do so constituting an event of default) of the loans in the event of certain asset sales or other asset dispositions, issuances of equity securities or debt securities, or if we have
annual consolidated excess cash flow. Our senior secured credit facility is guaranteed by all of our existing and future subsidiaries (other than unrestricted subsidiaries as defined in the senior secured credit facility), and is secured by a first
priority security interest in substantially all of our existing and future assets, and a first priority pledge of our capital stock and the capital stock of those subsidiaries, subject to certain exceptions agreed upon with our lenders and local law
requirements.

8.875% Senior Subordinated Notes Due 2012 The 8.875% senior subordinated notes were issued by Dollarama Group L.P.
and Dollarama Corporation. Interest on the senior subordinated notes accrues at 8.875% per year and is payable on the senior subordinated notes semi-annually on February 15 and August 15 of each year, beginning February 15, 2006.

Beginning August 15, 2009, the senior subordinated notes may be redeemed, in whole or in part, initially at 104.438% of their
principal amount, plus accrued and unpaid interest, declining to 100% of their principal amount, plus accrued and unpaid interest, at any time on or after August 15, 2011. Prior to August 15, 2009, the senior subordinated notes may be
redeemed, in whole or in part, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and a make-whole premium. In addition, prior to August 15, 2008, we may redeem up to 35% of the aggregate principal
amount of the senior subordinated notes at a price equal to 108.875% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, using proceeds from the sales of certain kinds of capital stock. Following a
change of control, we will be required to offer to purchase all of the senior subordinated notes at a purchase price of 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

The indenture governing the senior subordinated notes contains certain restrictions on us, including restrictions on our ability to incur indebtedness,
pay dividends, make investments, grant liens, sell assets and engage in certain other activities.

The senior subordinated notes constitute
general unsecured obligations and are subordinated in right of payment to all existing or future senior indebtedness. The senior subordinated notes are currently guaranteed by all of our subsidiaries.

Capital Expenditures

Capital expenditures for
the 13-week and 39-week periods ended November 4, 2007 were $14.3 million and $34.3 million, respectively versus $12.6 million and $32.6 million, respectively for the corresponding periods of fiscal 2007. Capital spending is mainly the result
of new store openings, store expansions, renovations and relocations, and increasing capacity of our distribution center and improving our information systems. There were 19 store openings with one store closure and 45 store openings with three
store closings in the 13-week and 39-week periods ended November 4, 2007, respectively compared with 20 store openings with one store closing and 57 store openings with three store closings in the three-month and nine-month periods ended
October 31, 2006, respectively. $5.2 million was spent toward the investment in our information systems during the 39-week period ended November 4, 2007. We expect to make additional expenditures to move our head office and open a new
warehouse.

We plan to open approximately 50 new stores in fiscal year 2008. In fiscal year ended February 4, 2007, the average cost
to open a new store was approximately $0.5 million, including $0.3 million for capital expenditures and $0.2 million for inventory.

Off-Balance Sheet
Obligations

Other than operating lease obligations and letters of credit, we have no off-balance sheet obligations.

Recent Accounting Pronouncements

In July 2006, the
CICA released Section 1506, Accounting Changes which replaces the former Section 1506 and applies to fiscal years beginning on or after January 1, 2007. The new Section allows for voluntary changes of accounting policy
only if they result in the financial statements providing reliable and more relevant information. The Section also requires that changes in accounting policies be applied retrospectively unless doing so is impracticable and provides additional
disclosures. The adoption of this pronouncement would impact our financial statement to the extent that a change in an accounting policy would be considered. As such, the adoption of this new section had no impact on the Partnership as of
February 5, 2007.



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Recently, the Financial Accounting Standards Board (FASB) issued FIN 48, Accounting for
Uncertainty in Income Taxes. This standard prescribes a recognition and measurement model for tax positions taken or expected to be taken in a tax return, and provides guidance on the recognition, reclassification, interest and penalties,
accounting in interim periods, disclosure and transition. The Partnership has applied this standard effective February 5, 2007, resulting in no impact on its consolidated financial statements.

Recently, the FASB issued SFAS No. 157, Fair Value Measurements. This standard establishes a framework for measuring fair value in GAAP
and expands disclosures about fair value measurements. The standard is effective for fiscal periods beginning after November 15, 2007. The Partnership is currently evaluating the effect of this standard on its consolidated financial statements.

In February 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities, (FAS 159). FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at
fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. FAS 159 is
effective for fiscal years beginning after November 15, 2007. We will apply this guidance beginning February 4, 2008. We do not expect that the adoption of this statement will have a material impact on our results of operations or
financial condition.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Exchange Risk

While principally all of our sales have been in Canadian dollars, we have been steadily increasing our purchases of merchandise from
low-cost foreign suppliers, including suppliers in China, Denmark, France, Hong Kong, India, Indonesia, Italy, Malaysia, Panama, the Philippines, Taiwan, Turkey, and the United States. For the fiscal year ended February 4, 2007, this direct
sourcing from foreign suppliers accounted for in excess of 50% of our purchases. Accordingly, our results of operations are impacted by the fluctuation of foreign currencies against the Canadian dollar. In particular, we purchase a majority of our
imported merchandise from suppliers in China using U.S. dollars. Therefore, our cost of sales is impacted by the fluctuation of the Chinese renminbi against the U.S. dollar and the fluctuation of the U.S. dollar against the Canadian dollar.

We use foreign exchange forward contracts to manage risks from fluctuations in the U.S. dollar relative to the Canadian dollar. All
forward contracts are used only for risk management purposes and are designated as hedges of specific anticipated purchases of merchandise. We estimate that in the absence of our currency risk management program, every $0.01 appreciation in the
Canadian dollar relative to U.S. dollar exchange rate results in approximately $1.0 million annual increase in operating earnings. The seasonality of our purchases will affect the quarterly impact of this variation. We periodically examine the
derivative financial instruments we use to hedge exposure to foreign currency fluctuation to ensure that these instruments are highly effective at reducing or modifying foreign exchange risk associated with the hedged item.

In addition, a majority of our debt is in U.S. dollars. Therefore, a downward fluctuation in the exchange rate of the Canadian dollar versus the U.S.
dollar would reduce our funds available to service our U.S. dollar-denominated debt. As required by the terms of our senior secured credit facility, we have entered into two swap agreements consisting of a foreign currency swap and an interest rate
swap that expire on January 31, 2011 to minimize our exposure to exchange rate and interest rate fluctuations in respect of our LIBOR-based U.S. dollar-denominated term loans. We record the fair value of the swap agreements as a reduction of
foreign exchange loss on long-term debt and change in fair value of derivative financial instruments in our consolidated statement of operations and in derivative financial instruments on the balance sheet.

On August 12, 2005, we entered into two additional swap agreements consisting of foreign currency swaps to minimize our exposure to exchange rate
fluctuations in respect of our senior subordinated notes. These swap agreements qualify for hedge accounting. The fair value of the swap agreements is deferred in a separate component in our consolidated statement of partners capital and other
comprehensive income until the underlying hedged transactions are reporting in our consolidated statement of earnings.

Interest Rate
Risk

We use variable-rate debt to finance a portion of our operations and capital expenditures. These obligations expose us to
variability in interest payments due to changes in interest rates. We have approximately $305.9 million in term loans outstanding under our senior secured credit facility based on the exchange rate on November 4, 2007, bearing interest at
variable rates. Each quarter point change in interest rates would result in a $0.9 million change in interest expense on such term loans. We also have a revolving loan facility which provides for borrowings of up to $75.0 million which bears
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at variable rates. Assuming the entire revolver is drawn, each quarter point change in interest rates would result in a $0.2 million change in interest
expense on our new revolving loan facility.

ITEM 4. CONTROLS AND PROCEDURES

An evaluation was carried out under the supervision and with the participation of our
management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934 (the Exchange Act)) as of the end of the quarter covered by this report. Based upon that evaluation, our CEO and CFO have concluded that our disclosure controls and procedures are effective. There were no changes in
internal control over financial reporting that occurred during the last fiscal quarter that have materially affected our internal control over financial reporting.

PART II  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are from time to time involved in legal proceedings of a nature considered normal to our
business. We believe that none of the litigation in which we are currently involved, individually or in the aggregate, is material to our consolidated financial condition or results of operations. Outstanding legal proceedings include one action
threatened against us for alleged trade-mark infringement pertaining to the sale of certain products by Framecraft Ltd who has asked that Dollarama L.P. cease selling Framecraft products. They have threatened litigation, but no proceedings have been
instituted against us. We have denied this claim and believe that it is without merit. Two other actions have been instituted against us for alleged personal injuries sustained by customers in our stores. In the first case (Pellegrino v.
Dollar A.M.A. Inc. (operating as Dollarama)filed on June 17, 2004 in the Ontario Superior Court of Justice, the plaintiffs are alleging damages of $4.4 million and in the second case (Guiseppa Calvo v. S. Rossy Inc.) filed
on May 8, 2006 in the Ontario Superior Court of Justice, the plaintiffs are alleging damages of $1.0 million. We believe that our insurance policies will cover any potential amount to be paid for these claims, other than punitive damages (in
the Pellegrino case, plaintiffs have amended their claim to seek a further $2.0 million dollars in punitive damages). While we intend to vigorously defend the claims asserted against us, we cannot predict their outcome.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors described in Item 1A. Risk
Factors in the Companys Annual Report on Form 10-K/A, filed with the SEC on December 14, 2007.

ITEM 6. EXHIBITS



|               |  |                                                                                                
|-------------- |  | -----------------------------------------------------------------------------------------------
|Exhibit Number |  | Description                                                                                    
|10.1           |  | Employment Agreement, dated August 31, 2007 between Dollarama Group L.P. and Stéphane Gonthier.
|               | 
|31.1           |  | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer, furnished herewith.     
|               | 
|31.2           |  | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer, furnished herewith.     
|               | 
|32.1           |  | Section 1350 Certifications, furnished herewith.                                               



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



|                         |  |                              |  |                        
|------------------------ |  | ---------------------------- |  | -----------------------
|                         |  | Dollarama Group L.P.        
|                         | 
|                         |  | By: Dollarama Group GP Inc.,
|                         |  | its general partner         
|                         |  |                             
|Dated: December 19, 2007 |  | By:                          |  | /s/ Larry Rossy        
|                         |  | Name:                        |  | Larry Rossy            
|                         |  | Title:                       |  | Chief Executive Officer
|                         |  |                             
|Dated: December 19, 2007 |  | By:                          |  | /s/ Robert Coallier    
|                         |  | Name:                        |  | Robert Coallier        
|                         |  | Title:                       |  | Chief Financial Officer



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