Reject Shop’s surprise new items
One of Australia's best-known budget chains is making it easier for Aussies to save on staples with a new partnership with a globally recognisable brand.
The Reject Shop, which is in the midst of a massive overhaul, has struck a new deal with UK supermarket juggernaut Tesco.
It means that from this week, a slew of exclusive Tesco-branded grocery items will be landing in The Reject Shop's 354 stores across the country.
The first wave of products will include packaged food, health, beauty and household products, with everything from flour to tea, biscuits, soups and more headed for Aussie shelves with more set to arrive in the months to come.
The Reject Shop CEO Andre Reich said there had been a great response from shoppers so far even before any formal advertising of the new range had rolled out, and that he expected the products to appeal to Australia's 1.2 million British expats as well as everyday Aussies keen to save on everyday items.
He said Tesco offered customers "more choice and a range of high quality products that they won't be able to source elsewhere in Australia".
"We've always gone wherever we can get really good products, and particularly now what we're trying to do is change some of that opinion about The Reject Shop being cheap and cheap quality, so we're building relationships with brands … and trying to reset and help re-educate people that we sell quality brands wherever they come from in the world," he said.
Mr Reich said The Reject Shop wanted to work with any company that "meets the needs of customers".
"We always try to look for bigger players that serve larger markets, and we say, 'give us your bestsellers'. The initial wave will be products they recommended as bestsellers in the UK, but we take that approach with everyone," he said,
"We buy a narrow range in volume at the cheapest price, and we pass on the savings to customers."
He said it was "bizarre" that groceries in the UK were around half the price of their Australian counterparts while in the US they cost around one-third, and that the three-year Tesco deal would enable Australian shoppers to take advantage of that discrepancy.
"I'm not sure how that happens, but I do know we've gone to Tesco and got a standard price from them, which allows us to retail at a very good price in Australia," he said.
"We're all facing tough economic times, and The Reject Shop will always help people save money … at the moment we're selling 500g of pasta for $1, and that helps those who are toughing it a bit to get the things they need.
"Tesco has some of the cheapest prices in Europe and definitely some of the biggest volumes in Europe with similar standards as Australia."
Tesco Group export director Jack Brabin said the company was "delighted" to be partnering with The Reject Shop.
"As the UK's leading food retailer, we take enormous care to ensure our products are the best quality and offer great value. We look forward to sharing them with The Reject Shop's customers," he said.