For decades, The Reject Shop has been a beloved fixture in Australian retail, a go-to for budget-friendly essentials and those quirky finds you never knew you needed.
But the iconic red and yellow branding inside stores has begun to be replaced with a new colourway as the discount retailer braces for extinction.
The Canadian discount powerhouse, Dollarama, which acquired The Reject Shop last year for nearly $260 million, has embarked on a massive rebranding exercise with the familiar red and yellow slowly being phased out of stores, making way for Dollarama’s signature green and gold.
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With up to 80 stores slated for an upgrade this year and a staggering target of 700 stores by 2034, the Canadian juggernaut is poised to establish a physical presence that will dwarf many existing retail chains.
“They’ll have more stores in Australia than Aldi has today,” retail expert Gary Mortimer told Seven News.
“It’s really set to shake up the discount department store sector.”
For decades Australians have flocked to The Reject Shop for cheap daily essentials. Now, stores are being rebranded as their new Canadian owner looks to take on not just Kmart, Target and Big W but the supermarkets. Source: Seven News
This aggressive expansion isn’t just about new colours and more locations; it’s about a fundamental shift in strategy.
Dollarama is leveraging its immense global buying power to drive down prices, aiming to lure shoppers away from traditional supermarkets and discount department stores alike.
“They’ll have global buying power. You’re buying for over 200,000 stores in Canada and you can totally extend and leverage that buying power to get lower prices here,” Mortimer explained.
The proof is already in the pudding, with significant price discrepancies emerging.
For instance, 4 litres of Omo Washing Liquid is reportedly just $19 at the new Dollarama stores, compared to $24 at Coles and Woolworths.
The Canadian discount powerhouse, Dollarama, acquired The Reject Shop last year for nearly $260 million.
The Dollarama green is creeping into stores. Source: Seven News
Similarly, a box of Cadbury Favourites, priced at $14 at the major supermarkets, will set you back only $8 at the rebranded discount outlets.
The transformation will see stores adopt bigger aisles and brighter layouts, designed to enhance the customer shopping experience.
“New and updated stores are designed to enhance the customer shopping experience by making stores easier to navigate while allowing us to stock even more products,” a spokesperson confirmed.
Shoppers are already noticing big price discounts on popular items. Source: Seven News
Dollarama hopes to operate 700 discount stores by 2034. Source: Seven News
Australians can expect a “broad assortment” of “everyday consumables,” general merchandise, and seasonal items, all promising “great value.”
While many of the “know and love” brands currently stocked at The Reject Shop will remain, there will be a “gradual introduction” of more “lower-priced products across categories.”
UNSW consumer behaviour researcher Professor Nitika Garg sees this as a clear win for the Australian consumer, especially amid the current cost-of-living pressures.
“A lot of households are struggling to make ends meet right now, and the cheaper options are attractive,” Garg told Yahoo Finance.
The full conversion of all existing stores isn’t expected until 2027, with Dollarama planning a gradual rollout of its proven value retail model.
For now, stores will continue to operate under The Reject Shop banner as elements of the Canadian giant’s strategy are slowly introduced.