The Reject Shop to Undergo Major Rebranding as Dollarama After Acquisition
In a significant move, The Reject Shop, Australia’s largest discount retailer, is set to undergo a major rebranding following its acquisition by Canadian company Dollarama last month.
The publicly listed company paid approximately AU$259 million to acquire The Reject Shop, which operates over 390 stores across Australia.
Dollarama, founded in 1910 as Rossy S Inc in Montreal, Canada, has expanded to operate 1400 stores across Canada and has a significant presence in Latin America.
The company is known for offering a wide range of products at affordable prices, with a maximum price point of AU$5.56.
Impact on The Reject Shop Stores
The rebranding process is expected to take several years, with some stores already receiving a makeover.
Dollarama products will be phased in, and prices are likely to decrease, with more expensive products being phased out.
The Reject Shop’s current product range, including food, snacks, gifts, and homewares, will be replaced by Dollarama’s general merchandise, which includes party supplies, office supplies, and consumable products.
In its quarterly report to investors, Dollarama hinted at its future plans for the chain, including implementing a new price point strategy and converting existing store designs and layouts.
The process is expected to be gradual, continuing until the end of fiscal 2027.
For Australian consumers, the rebranding is expected to bring more affordable prices and a wider range of products.
However, it remains to be seen how the changes will affect the iconic Australian brand and its loyal customer base.