Stationery a major part of the discount retailer’s product mix.

 

The Reject Shop’s acquisition by Canadian retailer Dollarama has been completed by way of a share scheme arrangement. 

 

“Expanding our international reach supports our long-term growth strategy, and we are thrilled to be embarking on this exciting new chapter with The Reject Shop’s local leaders and more than 5000 employees,” Neil Rossy, president and CEO of Dollarama, said.

 

The entry into Australia by Dollarama could be a threat to Officeworks’ stranglehold on the retail stationery market, according to retail analysts.

 

The Reject Shop has around 390 stores nationally, more than 4000 employees and FY24 sales of more than $850 million.

 

 Dollarama plans to repeat its global marketing strategy by optimising the merchandising mix, changing price point strategy and optimising store layout.

 

 Dollarama said it sees the Australian discounter store market as under-penetrated versus Canada and plans to drive sales in stationery, kitchen and consumables, as it has done in Canada.

 

 The Canadian company said it plans to open more than 300 stores by 2034 with a three to four- year transition to a new brand.