The Reject Shop has some issues with their core offering. Somewhere along the line discounted branded goods went from optimal to not. And with the likes of super market pricing competition between each other, the reject shops offering was collateral damage. Take into account overseas discounters (Daiso, Aldi) and Kmarts private label it is difficult to see where The Reject Shops place is..
Take into account store appearance. It just looks cheap. Not JB Hi-Fi lowest prices cheap, but outdated cheap.
Merchandising an unmitigated disaster. Looks like they told the kids just put it anywhere.
I might be a bit biased towards Daiso, but it honestly looks like the better model currently. For a discounter they have the volume to support the discount model, their aisles are a treasure hunt for the consumer. Have a look at the shoppers, The Reject Shop customer will go inside with a clear goal in mind for what they need. A Daiso customer will cruise all the aisles.
Good news is it is an incredible low base to improve from so I am always on the look out for the 'turn around' to happen before it gets mentioned. Management seems to be the only thing in the way. Two minute noodles and Greeting cards isn't going to fix the underlying issue.
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