Alex Cracknell

Money & Banking

Look out ALDI, Coles and Woolworths

Look out ALDI, Coles and Woolworths

After locking in a massive new deal with British grocery giant Tesco, Australian discount retail specialists The Reject Shop are looking to grab a huge share of the market by offering up significant savings for shoppers – and the deal is timed perfectly to take advantage of the widespread effects that COVID-19 is having on household budgets across the country.

The newly inked deal will deliver 300 of Tesco’s non-perishable grocery products to The Reject Shop stores across the country.

The Reject Shop’s clear leverage here lies in the size of the bulk order, as it allows the chain to release a significant number of the 300 grocery items for significantly reduced prices compared to their ALDI, Coles and Woolworths counterparts.

For example, items such as nappies will retail in bulk for under $10, and toothpaste will retail for as little as 50c – as will boxes of 100 bandages (also 50c).

As Dani Aquilina, The Reject Shop's Chief Operations Officer, explained to A Current Affair: “What we do specifically that's different is we make sure we find the best-selling products, we buy them in big volumes so we can get the best prices and then we pass those savings onto our customers. It's everything from pantry staples – oil, vinegar, we've got things like rice pouches, snacks and treats – and then we've also brought in a great baby range so everything from formula to baby wipes and nappies.”

“When Aldi came to Australia 15 years ago people said, ‘Why would you want to buy cheap food?’ and in 2009 when Kmart started its turnaround journey, they asked ‘Why would you want to offer cheap homewares and clothing, because people wouldn’t buy it,’” CEO Andre Reich said in a press briefing in late August.

“But things have changed a lot. Australia is a very expensive place to live but we also want to have everything we need for a good life … so if you’ve only got a fixed income, you’ve got to find ways to save in certain areas.

“It hasn’t been so cool or socially acceptable in Australia to shop down in a value store, but now people don’t worry as much where they shop as long as they save money.”

The discount chain has also recently relaunched its website in a further bid to lure customers away from The Big Three of ALDI, Coles and Woolworths, and has commenced a $3billion expansion plan to add more stores.