Dollarama and BMO cite affordability as they announce new loyalty points partnership

A Dollarama store and the BMO Bank of Montreal logo are seen in this combination photo. THE CANADIAN PRESS/Paul Chiasson/Andrew Vaughan

Dollarama has partnered with the Bank of Montreal’s Blue Rewards loyalty program.

In a news release on Tuesday, BMO announced that Blue Rewards members can now earn points at more than 1,700 Dollarama stores across Canada on purchases of $20 or more.

BMO’s announcement on the “multi-year exclusive strategic partnership” with the budget retail giant made several references to affordability as Canadians continue to grapple with inflation, which rose to 2.8 per cent in April.

“With affordability top of mind for many, Canadians are focused on managing their budgets and getting the most from every dollar,” Chris Wragg, BMO’s vice-president of strategic partnerships, said in the news release. “By meeting our members where they already shop for essentials, we’re making it easier to turn routine purchases into meaningful value and bring this benefit to more Canadians across the country.”

Bruce Winder, a retail analyst, said the partnership comes at a time when many Canadians remain focused on stretching their budgets.

“I think the newly launched Blue Rewards program is meeting customers where they are in an affordability crisis,” Winder said in an email to CTVNews.ca. “Customers’ everyday spending is now converted into everyday value.”

You must have a linked BMO payment card to earn Blue Rewards points on Dollarama purchases. Those with a BMO Blue Rewards Mastercard can earn additional points, which can be redeemed for things like gift cards, merchandise and travel bookings.

“Dollarama is focused on making everyday shopping simple, affordable and accessible for Canadians,” the company’s chief information officer, Nicolas Hien, said in the news release. “Partnering with Blue Rewards allows us to enhance that experience by adding rewards.”

Uwe Stueckmann, a co-founder and partner with Innovate Marketing, said the deal is a significant win for BMO because it adds a retailer that Canadians visit regularly.

“The dollar-store segment is the fastest growing retail segment in Canada,” he said in an interview with CTVNews.ca, adding that millions of Canadians shop at dollar stores every week.

For Dollarama, Stueckmann said the partnership marks a notable shift because discount retailers have historically placed less emphasis on loyalty programs.

“They were focused on delivering the lowest price to the consumer,” he said.

Dollarama has proven to be a popular shopping choice for Canadians as they face inflation and rising food prices, which were up 3.5 per cent year-over-year in April. In June, Dollarama reported a first-quarter profit of $302.3 million, up from $273.8 million in the same quarter last year.

BMO’s most recent financial report showed net income of $2.63 billion in the second quarter of 2026, up from $1.92 billion a year ago.

Stueckmann said the partnership is also likely to resonate with Canadian consumers, who have long embraced loyalty programs.

“Canada is the most sophisticated, most highly penetrated, loyalty market on the planet,” he said. “Canadians love their loyalty programs.”

He said consumers who combine the rewards program with an eligible BMO credit card could see greater value from the partnership.

“The dividend that Dollarama pays back to the customer is less than one per cent,” he said. “But if you stack it with the BMO credit card, it becomes six per cent or more.”

With files from The Canadian Press