Don't be afraid of the epidemic, invest 30 billion madly, and challenge Kmart and Aldi: to build Australia's strongest "one dollar store"! The Reject Shop? Isn’t it the bankruptcy trustee?
When it comes to Australia’s "good value" supermarkets,The first thing you think of must be Kmart or Aldi.These supermarkets provide customers with ultra-low discounts on daily necessities and daily necessities, which are wildly sought after by Australians. Especially the products of the same type produced by Aldi family: the quality and taste are first-rate but the price is only half of some Australian manufacturers. However, they may have to meet an opponent!
Do you remember the Reject Shops all over Australia?
The Reject Shop plans to invest A$30 billion with Kmart to grab market share in Australia. The days of Kmart Du's popularity may be gone forever.
Is it possible to defeat the opponent Kmart?
For a long time, The Reject Shop has been a favorite of budget-conscious shoppers.The store is currently brewing large-scale reforms, and executives hope it can quickly compete with retail giants such as Aldi and Kmart.If this bold new plan succeeds, it may drive competitors off the altar.
It is reported that,The CEO of this project team helped Kmart turn losses into profits Andre Reich (Andre Reich), The chief operating officer also started to work at The Reject Shop in 2007 and has a good knowledge of the company's business. Investors have also noticed this. Last month investment banking giant Morgan Stanley predicted that in the next 10 years,The value of the shares of The Reject Shop may reach 30 billion Australian dollars.The company upgraded its stock rating to “overweight”, “taking into account the huge potential market, changes in strategic direction and huge rewards for success”, and its share price soared to nearly A$7 per share from A$2 in July last year. .
How can The Reject Shop win?
So far, The Reject Shop’s success is partly due to its incredibly loyal customer base. According to statistics,Many of the 110 million customers that the store receives every week are regulars.For overseas markets, there are many "one dollar stores" that have been very successful, But as far as the Australian market is concerned, the biggest opponents of Reject Shop are Aldi and Kmart.
The person in charge Reich believes that "No one is really involved in this field——There are many mid-market brands like Coles, Woolworths and Myer, and even online companies like Catch and Amazon.But their prices are higher, no one is really doing what we do. "
He said that the company is reviewing its products and strategy,To take advantage of this market gap and attract more customers.
Fully expand to cover more customers
It is reported that,The Reject shop currently has 354 stores in Australia, and this number may double in three to five years.Most of them are relatively small compared to their competitors' stores. This will be a major advantage behind its chain store expansion plan.
In addition,The advantage of small shops allows The Reject Shop to enter more surrounding areas and suburbs that Kmart and Aldi cannot enter.This opportunity allows the brand to win more neglected customers.
The company also launched a new website,Consumers will eventually be able to shop on the website.The company has also increased its publicity efforts on social media and has comprehensively rectified physical stores to make them cleaner and more coordinated.
Buy the best products at low prices
The second step of The Reject Shop's reform is to improve cost performance. Reich said that taking pet supplies as an example, they will not provide consumers with 10 pet mattresses or more to choose from like Kmart, but will help consumers prioritize the selection of products so that they can buy two markets at the best price. The best pet mattress. he thinks, Focus on improving product selection requirements and quality to ensure that the products sold in the store are consistent with current trends and market needs.
In order to attract more young customers, The store is considering the introduction of clothing, electronics, handicrafts, knick-knacks and games.Due to the impact of the new crown epidemic, people's panic buying has caused a surge in sales of life and pet supplies. Reich said that the store's sales of confectionery products are leading, followed by health and beauty products, including toothbrushes, toothpaste, shampoo and hair dye, and then cleaning products such as detergents and garbage bags.
New opportunities under the epidemic
Reich said that another important factor that guarantees The Reject Shop's successful reform is "timing."
As consumers’ attitudes towards cheap retailers continue to evolve,The economic recession caused by the coronavirus has made consumers more budget-conscious than ever. Australia is a country with a very high cost of living. If people only have a fixed income, they can only find ways to save money in certain areas.
Reich believes that Australia's mid-to-high-end supermarkets are currently hindered to a certain extent by people's acceptance. People are not too worried about where to shop, they only care about where they can save money.
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News source: News.com.au