The Reject Shop sales increase, consumers favour low-priced consumables

Discount retailer The Reject Shop says consumers are gravitating towards low-priced consumables due to inflation.

During the company’s trading first half, sales grew 3.5 per cent to $439.7 million while comparable store sales were up 2.4 per cent compared to the previous period.

Tax-paid profit grew 6.2 per cent to $16.3 million while EBIT reached $26.8 million, up 7.8 per cent.

The business says consumers prefer “non-discretionary low-priced consumables” ahead of more discretionary products as general merchandise sales were softer than normal.

Acting chief, Clinton Cahn, said the business is currently focused on improving its merchandise offering, expanding its national store network, and managing gross profit margin and the cost of doing business while investing in strategic projects to enable efficiencies in the short term.

During this period, the business also opened eight new stores in predominantly strip locations and neighbourhoods in both metro and country areas.

It closed one store and expects to close four more during the second half due to centre redevelopments.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.