How The Reject Shop’s merchandise strategy adapted to the cost-of-living crisis

The Reject Shop’s chief operating officer on why the retailer's mission to provide consumers value matters more than ever before.

The post How The Reject Shop’s merchandise strategy adapted to the cost-of-living crisis appeared first on Inside Retail Australia.

Much like the broader retail industry, The Reject Shop is facing inflationary pressures but it remains focused on its mission to provide value to its customers.

“By shopping with us, customers save money,” Amy Eshuys, The Reject Shop’s chief operating officer, told Inside Retail.

“We work hard to keep our overall costs of doing business low so we can maintain our price advantage versus other retailers,” said Eshuys.

The Reject Shop’s low-cost operations combined with the ongoing success of its merchandise strategy are intended to set the retailer up for success despite macroeconomic conditions.

It is expecting to keep the positive momentum going into the new financial year and see a further increase in sales after reporting that sales were up 4 per cent year-to-date in May.

Low costs, lower prices 

“We are a low-cost operation and this is a source of immense pride for us,” stated Eshuys.

The current cost-of-living crisis has only reaffirmed The Reject Shop’s mission to help Australians save money on essential and non-essential purchases. 

“The money that our customers can save at The Reject Shop can be used to pay for other needs that families have, or the money saved can help bring a little joy back home in the form of some new touches for the kitchen, bedroom and living room or some new toys for the kids,” explained Eshuys.

The Reject Shop’s value proposition goes beyond just low prices and extends to its product selection.

The merchandising strategy 

The Reject Shop initially developed its merchandise strategy to have the right branded products at the best prices across key categories, including cleaning, toiletries, pet and snacks.

“This is done through our consumables business where we offer best in market prices on nationally branded products,” shared Eshuys.

“Our positive sales and customer trends suggest the strategy is resonating well with both our existing and new customers,” she added.

Cross-shopping outside supermarkets for essential household items has become increasingly popular as consumers try to manage their household budgets, and this trend that has translated into positive growth for The Reject Shop’s everyday essentials categories.

“These are categories where we carry national brands that are also available in supermarkets, including Fab, Morning Fresh, Finish, Colgate, Dove, Schmackos, Pedigree and hundreds of other national brands. By shopping with us, customers save money,” said Eshuys.

“We continuously compare our prices against our competitors to ensure that we are providing savings opportunities on everyday essentials.”

More than value

While The Reject Shop’s aforementioned merchandise strategy centring essential items has proven extremely successful, it is now refining the strategy to include discretionary and commodity products.

Every month The Reject Shop launches a new homewares range with nearly every item priced under $10, and most items priced under $5.

The monthly drops, like this month’s ‘secret garden’ collection, have created hype around their limited-edition nature and encouraged consumers to visit stores and share their purchases online.

“We also know that while our customers are facing higher cost-of-living pressures, they still want to make purchases that bring them and their family joy,” concluded Eshuys.

The post How The Reject Shop’s merchandise strategy adapted to the cost-of-living crisis appeared first on Inside Retail Australia.