Merchandise strategy pays off for Reject Shop

The Reject Shop says its new merchandise strategy is showing positive signs.

FY24 is the first full year the strategy has been “meaningfully” deployed and the discount retailer achieved annual comp-store sales growth of 2.7 per cent and overall sales growth of 4.2 per cent.

During the second half, comparable store sales rose 3.3 per cent while total sales jumped 4.1 per cent, attributed to a continuation of the positive sales momentum from the first half.

The company also noted that general merchandise performed strongly during the Easter and Mother’s Day events. In addition, customers responded well to the discount retailer’s newness and differentiation in its Home range.

“Like many Australian retailers, The Reject Shop is currently facing a number of macro and inflationary pressures, including higher wages, domestic supply chain costs, and shrinkage,” said Clinton Cahn, The Reject Shop CEO.

The company forecasts full-year earnings before interest and taxes to range from $4 million to $5.5 million.

“As we prepare for FY25, my team and I are very focused on improving gross profit margin and managing the cost of doing business,” said Cahn.

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