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The Reject Shop
The Reject Shop
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The Reject Shop is an Australian discount variety store chain selling a range of goods such as food, snacks, gift cards and party, health and beauty aids, cleaning supplies, storage, kitchenware, homewares and seasonal items in 401 store locations across Australia. It is a subsidiary of Canadian discount chain Dollarama.

Key Information

Founded in 1979, The Reject Shop employs over 5,000 staff.[2] The group replaced a number of Chickenfeed stores in Tasmania, and took up the space that was left when Retail Adventures closed down.

In 2025, Canadian company Dollarama purchased the company, delisting it from the Australian Stock Exchange and taking it into foreign hands. It later announced it planned on rebranding the stores to Dollarama.

History

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The first store was opened in South Yarra, Melbourne by founders Ron Hall and John Shuster in 1981.[3] This shop sold seconds and discontinued lines, hence The Reject Shop name.[4]

In 1994, the chain became majority owned by Macquarie Bank. It was floated on the Australian Securities Exchange in June 2004.[5][6] The float was successful, with the company tripling in size two years after going public.[7]

Former Chief Executive Barry Saunders, recruited to the company in 2000 by Macquarie Bank, retired in 2007.[8] He was replaced in May 2007 by Gerry Masters, a former Coles Group executive, after 33 years with his former employer.[9]

On 11 September 2009, it was announced that Gerry Masters had resigned his position as managing director and would be replaced by Chris Bryce, the chief financial officer, effective 14 September 2009.

Despite the strong growth experienced by the company in the years following 2004, a profit warning in December 2010 resulted in a sharp drop in the share price. The company was also affected by the Queensland Floods of 2010, with the company's Ipswich Distribution Centre being flooded. The warehouse became operational once again on 28 August 2011. A similar profit warning in June 2014 resulted in another share drop of 50%, making them one of the top worst performing shares in 2014.[10][11]

In 2013, the company commenced an aggressive growth plan, following the closure of a number of Retail Adventures stores. The company passed the 300 store milestone in October 2013.

On 8 July 2014, The Reject Shop announced the appointment of Ross Sudano (formerly of Little World Beverages) as chief executive officer. His appointment followed the departure of Chris Bryce in June 2014, after leading a significant growth phase of the business.[12]

In January 2020, the company announced Andre Reich as chief executive officer.[13] In September 2020, The Reject Shop announced a partnership with British supermarket chain Tesco.[14] In October they launched a lowest price guarantee[15] In November 2020, The Reject Shop launched a partnership with DoorDash.[16]

In March 2025, the board accepted a $259 million takeover offer from Dollarama, a Canadian discount retailer.[17] The investor presentation said it will deliver a “dollarama shopping experience” with a new store layout, design and merchandising experience.[18][19] The acquisition was completed in July 2025 and the company was removed from the ASX.[20] It was confirmed in August 2025 that The Reject Shop stores would be rebadged as Dollarama.[21]

See also

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References

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from Grokipedia
The Reject Shop is an Australian discount variety retailer that sells everyday essentials, homewares, groceries, cleaning supplies, pet products, and seasonal items from trusted brands such as Dove, , and . Founded in 1981 by Ron Hall and John Shuster, it opened its first store in the suburb of and has since expanded to 404 locations across all Australian states except the , with the largest concentrations in , Victoria, and , as of November 2025.[](https://www.scrapehero.com/location-reports/The Reject Shop-Australia/) In July 2025, the company was acquired by Canadian discount chain Inc. for A$259 million, marking Dollarama's entry into the Australian market, with store rebranding to Dollarama planned to occur gradually through fiscal 2027 and beyond. The Reject Shop has built its reputation on providing affordable, value-driven merchandise in a variety store format, targeting budget-conscious consumers with a mix of branded and private-label products. Over its more than four decades of operation, it has navigated the competitive discount retail landscape alongside rivals like and [Big W](/page/Big W), emphasizing accessibility and everyday savings. Following the acquisition, intends to integrate its low-cost model by introducing simplified pricing, reduced prices on select items, and standardized store layouts, while maintaining the existing network of physical locations. As of late 2025, the chain continues to operate under its original branding during the transition period, supporting its core mission of helping Australian households manage household needs economically.

History

Founding and early years

The Reject Shop was founded in 1981 by Ron Hall and John Shuster as a discount variety store concept aimed at providing affordable household essentials to budget-conscious consumers. The first store opened in 1981 in the Melbourne suburb of , marking the chain's entry into the Australian retail market. From its inception, the early centered on sourcing low-cost surplus stock, factory rejects, and clearance items from manufacturers, which allowed the retailer to offer discounted everyday goods and attract price-sensitive shoppers. During the , the chain experienced initial growth through small-scale store openings primarily in Victoria, building a local presence around before broader expansion. In 1994, Macquarie Bank's private equity arm acquired majority ownership of the company, injecting capital that supported further development leading to its public listing in 2004.

Expansion and public listing

Following initial expansions in the 1990s, during which the chain grew from 40 stores in 1993 to over 100 locations by the early 2000s, The Reject Shop experienced rapid scaling that more than tripled its store numbers from 40 to approximately 140 by the end of 2006. In June 2004, The Reject Shop conducted an (IPO) on the Australian Securities Exchange under the ticker ASX: TRS, raising $44.1 million to fund further national expansion and store rollouts. The listing supported accelerated growth, enabling the company to enter new markets beyond its Victorian stronghold. The company's operations faced significant disruption from the , which inundated its newly opened distribution center in January 2011, leading to temporary closures and substantial inventory losses across affected stores. The facility, servicing around 90 stores, was restored and reopened in August 2011, allowing recovery. Store growth continued through opportunistic acquisitions of competitor spaces in the 2000s and 2010s, including the purchase of six former Chickenfeed outlets in Tasmania in 2013 and leasing vacated sites from the collapsed Retail Adventures chain, such as Go-Lo stores. These moves bolstered the network without full-scale new builds, targeting high-traffic discount retail locations. To strengthen its position in the competitive discount sector amid economic pressures in , The Reject Shop introduced a lowest , promising to beat any lower from another Australian retailer by 10% on identical products. This initiative focused on essentials like groceries, aiming to attract value-conscious consumers during the .

Acquisition by Dollarama and rebranding

On March 26, 2025, Canadian discount retailer Inc. announced its agreement to acquire The Reject Shop Limited, an Australian variety store chain, for A$259 million (approximately C$233 million in equity value). The deal, unanimously recommended by The Reject Shop's board, represented a strategic entry for into the Australian market, targeting the company's established network of discount outlets. The acquisition was completed on July 21, 2025, resulting in The Reject Shop's delisting from the Australian Securities Exchange (ASX), where it had been publicly traded since 2004, and its integration as a wholly owned subsidiary of . This transaction marked the end of The Reject Shop's independent operations and positioned it under 's global expansion framework, with the Canadian firm assuming full control to leverage synergies in and . Post-acquisition plans include a gradual rebranding of all stores to the name, beginning in 2027 and leading to the complete phase-out of the Reject Shop brand by the end of the decade. aims to apply its merchandising expertise—focused on fixed low-price points and efficient product assortment—to transform the operations, with strategic goals centered on expanding the store network from approximately 395 locations to 700 across by 2034. This growth initiative is intended to enhance in underserved regional areas while adapting to local consumer preferences. The decision to pursue the sale was influenced by intensifying competitive pressures from online retailers such as Temu, Shein, and Amazon, which contributed to a "price anchors collapse" in the Australian discount sector by eroding traditional pricing expectations in 2025. These e-commerce giants, offering ultra-low-cost imports, shifted consumer perceptions of value, prompting The Reject Shop's leadership to seek a partnership that could provide scale and resilience against such disruptions.

Products and merchandising

Range of goods

The Reject Shop offers a diverse range of discount variety goods tailored to budget-conscious Australian consumers, with primary categories encompassing and snacks, gift cards, supplies, and aids, supplies, homewares, and seasonal items. and snacks include everyday groceries such as crackers, chips, biscuits, sweets, chocolate, and even soup options, providing affordable options for quick meals and treats. and aids feature skincare, makeup, vitamins, and supplements from accessible lines, while supplies cover household essentials like detergents and tools. Homewares span and dining items, storage solutions, , garden products, and decor to support daily living, and supplies include decorations, cards, and wrapping for celebrations. Seasonal items, such as decorations, trees, and festive , align with Australian holiday traditions like summer barbecues and winter festivities. A key aspect of the product assortment is the mix of private-label items developed in-house for exclusivity and cost control, alongside national and international to ensure variety at low prices. Private labels constitute a significant portion of the over 8,000 stock keeping units (SKUs) available, emphasizing quality essentials without , while like for snacks, Dove and Sukin for beauty, and for party goods add trusted familiarity. This blend targets family and budget shoppers by focusing on everyday essentials, including groceries for stocking, pet care products such as leads, collars, , and food, and home decor items like and storage organizers. The approach reflects an evolution toward impulse buys and clearance sections, such as the Bargain Buy area, which highlights surplus or discounted goods in line with the store's original "reject" theme of offering overstock and factory seconds. The inventory is adapted to Australian consumer preferences, incorporating local favorites like Brunnings for garden care and seasonal merchandise that caters to events such as , birthdays, and public holidays, ensuring relevance in a market where affordability meets cultural needs. New arrivals frequently introduce quirky or trending items, like bag charms or activity games, to encourage spontaneous purchases while maintaining a core of practical, value-driven options. This prioritizes conceptual variety over exhaustive listings, fostering a one-stop experience for households seeking savings on non-luxury goods.

Pricing and sourcing

The Reject Shop employs a discount pricing model centered on low everyday prices, with predominant price points ranging from A$0.45 to A$15.00, encompassing approximately 90% of its sales volume. This structure ensures accessibility for budget-conscious consumers seeking essentials such as supplies and snacks. The company's sourcing strategy emphasizes cost efficiency through a combination of direct imports and domestic purchases, with roughly 48% of goods imported and 52% sourced locally in FY2024. It historically acquires surplus inventory, seconds, and discontinued lines from major manufacturers to maintain low acquisition costs, alongside offerings of private-label and national brand products developed via partnerships. This approach supports a high-volume, low-margin model that competes effectively with supermarkets and online discounters by prioritizing rapid over . In 2020, The Reject Shop introduced a "lowest price guarantee," committing to match and beat competitors' prices by 10% on identical products to enhance customer trust amid economic uncertainty. Post-2020, the retailer adjusted its sourcing to mitigate inflation and supply disruptions, including normalized international shipping costs after peaks and a strategic emphasis on bulk acquisitions of non-perishables to stabilize margins despite rising and expenses. These measures have enabled sustained focus on value-driven while navigating broader cost pressures. Following the July 2025 acquisition by , the company began selectively phasing in Dollarama products across categories as of September 2025, with plans to introduce simplified pricing and reduced prices on select items during the gradual through fiscal 2027.

Operations

Store network

The Reject Shop operates a network of 404 stores as of November 2025, with locations primarily in urban and suburban areas across all Australian states and territories. This distribution enables broad accessibility, concentrating in high-traffic zones to serve diverse customer bases in metropolitan centers like , , and , as well as regional suburbs. Stores follow a standardized format averaging approximately 7,700 square feet, optimized for efficient customer browsing through open layouts that showcase a wide variety of discounted items. This emphasizes spacious aisles and prominent shelving to facilitate quick navigation and impulse purchases, aligning with the retailer's focus on value-driven variety shopping. The network's growth has historically involved strategic acquisitions, such as the 2013 purchase of six Tasmanian stores from the defunct Chickenfeed chain, which helped establish a denser presence in eastern states like Victoria, , and . These moves capitalized on vacancies from collapsing competitors, enhancing without extensive new builds. Each store generated an average revenue of A$2.3 million based on the last twelve months ended December 29, 2024, underscoring stable operational performance across the network. Following the 2025 acquisition by , plans emphasize network optimization through targeted expansion to around 700 locations by 2034, prioritizing growth in underserved areas without immediate store closures. This strategy includes gradual rebranding to by fiscal 2027.

Distribution and supply chain

The Reject Shop operates three primary distribution centres to manage national distribution, located in Hazelmere, Western Australia; Truganina, Victoria; and . These facilities handle the flow of goods to the company's network of over 390 stores across , ensuring timely replenishment of clearance and seasonal items. The centre, which services approximately half of the company's sales volume, was severely damaged by floods in January 2011, shortly after its opening in mid-2010, leading to operational disruptions and a trading halt. It was reopened in August 2011, enhancing resilience against natural disasters. The company employs a centralized across its distribution centres, utilizing warehouse management software to track levels and facilitate just-in-time . This approach minimizes holding s by prioritizing rapid turnover of clearance and seasonal goods, with processes like 'one touch' merchandising and 'pallet to place' reducing and streamlining operations. is valued at the lower of and net realizable value, with provisions for shrinkage based on historical counts to maintain accuracy. Efficient transport networks are integral to serving remote and regional stores, with a focus on cost control in freight and warehousing through lease management and domestic logistics optimization. Leases for the centres have been extended strategically—Perth until August 2029, until February 2030 (with an option to surrender from August 2027), and until November 2026—to support long-term stability amid expansion plans. Following global disruptions from onward, including COVID-19-related delays and elevated shipping costs, The Reject Shop implemented enhancements such as a new warehouse booking system and an upgraded to enable faster replenishment and improved product availability. These measures have helped normalize performance, though domestic freight costs remain a monitored expense.

Partnerships and services

In September 2020, The Reject Shop established a partnership with British supermarket chain to expand its grocery sourcing and introduce a wider variety of private-label products, including pantry staples and household essentials, to Australian stores. The company integrated with in November 2020 to provide on-demand delivery and in-store pickup services from over 120 locations, facilitating rapid home delivery of daily essentials—often within one hour—particularly during . This collaboration, which supported contactless options for items like cleaning supplies and snacks, was paused effective August 31, 2025, as the retailer shifted focus to core in-store operations. The Reject Shop launched an online catalogue on its , rejectshop.com.au, enabling customers to browse current deals, product ranges, and store-specific availability for in-store pickup or purchase. This digital feature, introduced as part of a 2020 e-commerce trial to enhance online presence without full shipping, allows users to view seasonal promotions and locate items via suburb-based searches before visiting physical stores. The Reject Shop operates the Savvy Shopper , where members register via to receive early access to catalogues, exclusive discounts, and entry into monthly giveaways, such as $10,000 prizes, by scanning barcodes in-store. Promotional events are tied to seasonal sales, featuring bundled offers on party supplies like decorations and for holidays such as , Halloween, and , often highlighted through limited-time catalogues and in-store displays. Following its acquisition by in July 2025, The Reject Shop adapted its services to support hybrid shopping models by emphasizing the online catalogue's integration with expanded store networks, aiming to compete with giants through seamless browsing-to-in-store transitions amid rising online retail pressures.

Corporate affairs

Ownership and governance

The Reject Shop was founded in 1981 as a private company by Ron Hall and John Shuster, who maintained ownership until its . In 2004, the company listed on the Australian Securities Exchange (ASX) under the ticker TRS, transitioning to public company status and becoming subject to the ASX Corporate Governance Council's Principles and Recommendations. During its public era, The Reject Shop's governance structure emphasized board independence and oversight, with a board comprising four directors, a of whom were independent non-executive directors chaired by an independent figure separate from the CEO role. The company established key committees, including the Audit and Risk Committee—composed of at least three members, independent, and chaired by an not serving as board chair—and the People and Culture Committee to address nominations and . These structures ensured compliance with ASX retail sector requirements, focusing on financial reporting, , and ethical practices throughout the period up to mid-2025. In March 2025, Inc. announced its acquisition of The Reject Shop for approximately A$259 million, a deal unanimously recommended by the Reject Shop board. The transaction closed on July 21, 2025, through International Inc., a wholly owned indirect of , making The Reject Shop a full and resulting in its delisting from the ASX effective July 23, 2025. Post-acquisition, governance has integrated into 's global framework, aligning with the Canadian parent's standards for subsidiary oversight while retaining local management for operations.

Management

Barry Saunders served as managing director and CEO of The Reject Shop from 2000 until his retirement in July 2007, during which he guided the company through its initial public offering on the Australian Securities Exchange in 2004 and ensured post-IPO stability amid early growth challenges. Gerry Masters succeeded Saunders as managing director and CEO in May 2007 and held the position until his resignation in September 2009, with a focus on operational efficiencies to navigate the economic downturn of the global financial crisis. Chris Bryce assumed the role of CEO in September 2009, having joined the company in 2003, and led until his departure in June 2014; under his leadership, The Reject Shop recovered from the severe impacts of the , which damaged its and inventory, while pursuing store network expansions to over 300 locations. Ross Sudano was appointed CEO and managing director in July 2014 and served until May 2019, implementing digital partnerships such as the launch of delivery services with in response to evolving retail shifts driven by changing consumer behaviors. Andre Reich took over as CEO in January 2020 and led until April 2022, managing heightened competitive pressures in the discount retail sector. Phil Bishop succeeded as CEO in July 2022 and served until his resignation in February 2023. Clinton Cahn, previously , served as acting CEO from April 2022 and was appointed permanent CEO in August 2023, leading through the acquisition by Inc. in July 2025. Following the completion of 's acquisition of The Reject Shop in July 2025, executive integration with 's leadership team commenced in late 2025 to align operations and strategic direction across the combined entities.

Financial performance

The Reject Shop experienced steady revenue growth following its on the Australian Securities Exchange in June 2004, with sales rising 7% to A$601.3 million in the first half of 2004 and subsequent profit upgrades reflecting strong post-listing . However, this trajectory was disrupted by the 2010 floods, which severely damaged the company's distribution center in , leading to a 30% decline in net profit to A$16.17 million for 2011 from A$23.4 million the prior year, alongside a 4% drop in EBITDA to A$29.7 million in the first half of 2011 due to interruptions and inventory losses. The 2020 further pressured margins through increased operating costs for compliance with restrictions, though demand for essential goods like and grocery items supported a modest net profit of A$2.7 million and 3.4% sales growth to A$820.6 million in 2020. In fiscal year 2024, The Reject Shop reported annual revenue of A$855.2 million, a 4.4% increase from the previous year, with earnings before interest and tax (EBIT) of A$13.8 million and net profit after tax of A$4.7 million, reflecting improved gross margins in the second half amid cost pressures and shrinkage. For the last twelve months ended December 29, 2024, sales reached A$866 million, supported by approximately 5,000 employees across operations. This period also showed an average revenue per store of A$2.3 million. The company's acquisition by in July 2025 highlighted its valuation, with an enterprise value of A$189 million pre-AASB 16 adjustments (equivalent to C$170 million) and A$421 million post-adjustments (C$379 million), based on last twelve months EBITDA multiples of 8.9x pre-AASB 16 and 3.3x post-AASB 16 as of December 29, 2024.

References

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