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Company > The Reject Shop: Business Model, SWOT Analysis, and Competitors 2023

The Reject Shop: Business Model, SWOT Analysis, and Competitors 2023

Published: Mar 18, 2023

Inside This Article


    In this blog article, we will explore The Reject Shop's business model, conduct a SWOT analysis, and examine its competitors as we look ahead to 2023. The Reject Shop is a well-known discount variety retailer that offers a wide range of products at affordable prices. By understanding its business model, we can gain insights into its key strategies and operations. Additionally, a thorough SWOT analysis will help us evaluate the company's strengths, weaknesses, opportunities, and threats. Finally, we will delve into the competitive landscape to identify The Reject Shop's rivals in the market.

    What You Will Learn:

    • Who owns The Reject Shop and the significance of its ownership in the retail industry.
    • The mission statement of The Reject Shop and how it drives the company's goals and strategies.
    • The various revenue streams and business model that The Reject Shop utilizes to generate profits.
    • A detailed explanation of The Reject Shop's Business Model Canvas and its key components.
    • An overview of the major competitors in the retail market that pose a challenge to The Reject Shop's success.
    • A comprehensive SWOT analysis of The Reject Shop, highlighting its strengths, weaknesses, opportunities, and threats in the industry.

    Who owns The Reject Shop?

    Background on The Reject Shop

    Before diving into who owns The Reject Shop, let's take a brief look at the company itself. The Reject Shop is a popular discount variety retailer in Australia, known for offering a wide range of everyday products at affordable prices. From household items to stationery, groceries to electronics, this retail chain caters to budget-conscious shoppers across the country.

    Ownership History

    The ownership of The Reject Shop has gone through several changes over the years. The company was initially founded in 1981 by Ron Hall, who opened the first store in South Yarra, Victoria. As the business grew, Hall decided to sell a majority stake in the company in 2004.

    The Reject Shop was then acquired by a private equity firm called Archer Capital, which specializes in investing in retail businesses. Under Archer Capital's ownership, The Reject Shop expanded its store network, opening new locations across Australia and solidifying its position as a leading discount retailer.

    In 2013, The Reject Shop became a publicly listed company on the Australian Securities Exchange (ASX), allowing individuals and institutional investors to buy shares and become partial owners of the company. This move brought increased transparency and accountability to the business operations.

    Current Ownership

    As of the latest available information, The Reject Shop's ownership is distributed among various institutional and individual shareholders. The largest shareholders are typically institutional investors, including investment management firms, superannuation funds, and pension funds. These entities hold significant stakes in the company, often influencing its strategic decisions and overall direction.

    It's worth noting that ownership stakes can change over time as investors buy or sell shares on the stock market. Therefore, it's essential to refer to the latest public disclosures and regulatory filings to get the most accurate and up-to-date information on the current ownership structure of The Reject Shop.


    While The Reject Shop was originally founded by Ron Hall, it has since undergone changes in ownership, including being acquired by Archer Capital and later becoming a publicly listed company. Currently, the ownership of The Reject Shop is spread among various institutional and individual shareholders, with institutional investors typically holding the largest stakes. For the most accurate and recent ownership information, it is advisable to consult public disclosures and regulatory filings.

    What is the mission statement of The Reject Shop?

    The Mission Statement of The Reject Shop

    The mission statement of The Reject Shop is centered on providing customers with a unique shopping experience that offers exceptional value for money. By offering a wide range of quality products at affordable prices, The Reject Shop aims to help customers save money without compromising on quality.

    At the core of their mission is the commitment to understanding and meeting the needs of their customers. The Reject Shop strives to provide a diverse range of products that cater to different customer preferences and lifestyles. Whether it is household essentials, party supplies, or seasonal items, their mission is to ensure that customers can find what they need at affordable prices.

    Another important aspect of The Reject Shop's mission statement is their dedication to creating a welcoming and inclusive shopping environment. They believe in treating all customers with respect and providing excellent customer service. The Reject Shop aims to foster a positive shopping experience for every customer, ensuring that they feel valued and appreciated.

    Additionally, The Reject Shop is committed to being a responsible corporate citizen. They aim to make a positive impact on the communities they serve by supporting local initiatives, charities, and community organizations. Their mission includes actively contributing to the well-being and development of the communities in which they operate.

    In summary, the mission statement of The Reject Shop revolves around providing exceptional value for money, understanding and meeting customer needs, creating a welcoming shopping environment, and being a responsible corporate citizen. Through these principles, The Reject Shop aims to deliver on their promise of affordable quality and excellent customer service.

    How does The Reject Shop make money?

    Revenue Streams

    The Reject Shop generates its revenue through various channels. Let's explore the primary sources of income for the company:

    1. Sale of Discounted Merchandise

    The core business model of The Reject Shop revolves around offering a wide range of discounted products. By sourcing products from various suppliers, including manufacturers, wholesalers, and liquidators, the company is able to acquire merchandise at significantly reduced prices. This enables them to sell products to customers at highly competitive prices, attracting bargain-seeking shoppers.

    2. Private Label Brands

    In addition to selling discounted products from external suppliers, The Reject Shop also develops and sells its own private label brands. Private label brands refer to products that are exclusively manufactured and packaged for The Reject Shop. These products often provide higher profit margins compared to branded merchandise, as they eliminate the need for middlemen and allow for more control over pricing and quality.

    3. Seasonal and Promotional Sales

    The Reject Shop strategically capitalizes on seasonal events and special occasions to boost sales. By offering themed products, such as Christmas decorations, Easter eggs, Halloween costumes, or back-to-school supplies, the company taps into the consumer demand during these periods. Additionally, The Reject Shop runs promotional sales throughout the year, leveraging discounts and limited-time offers to drive customer traffic and increase revenue.

    4. Online Sales

    Recognizing the growing importance of e-commerce, The Reject Shop has established a strong online presence. Through its website, customers can conveniently browse and purchase products from the comfort of their homes. Online sales contribute to the company's revenue, allowing them to reach a wider customer base beyond the physical stores' locations.

    5. Business-to-Business (B2B) Sales

    Apart from serving individual customers, The Reject Shop also engages in B2B sales. This involves supplying discounted products to other retailers, businesses, and organizations. By offering bulk quantities at competitive rates, The Reject Shop caters to the needs of various entities, including schools, charities, and businesses looking to stock up on affordable merchandise.

    Overall, The Reject Shop's revenue streams encompass discounted merchandise sales, private label brands, seasonal and promotional events, online sales, and B2B transactions. This diversified approach enables the company to generate income from multiple sources while appealing to a broad customer base.

    The Reject Shop Business Model Canvas Explained

    What is the Business Model Canvas?

    The Business Model Canvas (BMC) is a strategic management tool that helps businesses visualize, analyze, and design their business models. It provides a comprehensive framework for understanding and describing the key components of a business, including its value proposition, customer segments, revenue streams, cost structure, and more.

    The Key Components of the Reject Shop's Business Model Canvas

    1. Value Proposition: The Reject Shop aims to provide customers with a wide range of quality everyday products at affordable prices. They offer a variety of products across different categories, including household goods, stationery, kitchenware, confectionery, and more. Their value proposition lies in the combination of low prices, convenient store locations, and a diverse product range.

    2. Customer Segments: The Reject Shop targets budget-conscious consumers who are looking for affordable everyday products. Their customers include individuals and families from various income levels who prioritize value for money. By understanding their target customers' needs and preferences, the Reject Shop can tailor their product offerings and marketing strategies to attract and retain these customer segments.

    3. Channels: The Reject Shop primarily sells its products through its network of physical stores. With over 350 stores across Australia, they have established a strong presence in both metropolitan and regional areas. In addition to their physical stores, the Reject Shop also operates an online store, allowing customers to conveniently shop from the comfort of their own homes.

    4. Customer Relationships: The Reject Shop focuses on building long-term relationships with their customers by consistently delivering value and meeting their needs. They achieve this through friendly and helpful customer service, ensuring product availability, and regularly updating their product offerings based on customer feedback and market trends.

    5. Revenue Streams: The main revenue stream for the Reject Shop comes from the sales of their products. By offering a wide range of products at affordable prices, they aim to attract a large customer base and generate consistent sales revenue. Additionally, they may also generate revenue through promotional activities, partnerships, and collaborations with other brands.

    6. Key Activities: The key activities of the Reject Shop include sourcing and procuring products from suppliers, managing store operations, inventory management, marketing and advertising, and maintaining strong relationships with suppliers, customers, and stakeholders. These activities are crucial for ensuring the smooth functioning and success of the business.

    7. Key Resources: The key resources of the Reject Shop include their physical stores, distribution centers, inventory, supplier relationships, IT systems for managing operations and customer data, and their workforce. These resources are essential for delivering their value proposition, managing customer relationships, and generating revenue.

    8. Key Partnerships: The Reject Shop collaborates with various suppliers to ensure a consistent supply of quality products at affordable prices. They also partner with other brands for promotional activities and special offers. By establishing and maintaining strong partnerships, the Reject Shop can enhance its product offerings and reach a wider customer base.

    9. Cost Structure: The Reject Shop operates on a low-cost business model, aiming to keep their costs as low as possible while maintaining product quality and customer satisfaction. Their cost structure includes expenses related to sourcing products, store operations, marketing and advertising, employee wages, rent, utilities, and logistics. By managing their costs efficiently, the Reject Shop can offer competitive prices to their customers while maintaining profitability.


    By analyzing the Reject Shop's business model canvas, it is evident that they have strategically designed their business to cater to the needs of budget-conscious consumers. Through their value proposition, customer segments, channels, and key activities, the Reject Shop has successfully positioned itself as a leading retailer of affordable everyday products in Australia. Their focus on cost management, strong partnerships, and customer relationships further contribute to their sustainable growth and success in the market.

    Which companies are the competitors of The Reject Shop?

    Major Competitors

    The Reject Shop, as a leading discount variety retailer, faces competition from several companies in the industry. Here are some of its major competitors:

    1. Kmart: Known for its extensive range of low-priced everyday items, Kmart presents a significant competition to The Reject Shop. With a similar target market and a focus on providing affordable products across various categories, Kmart attracts customers looking for bargain deals.

    2. Big W: As another prominent discount retailer, Big W competes directly with The Reject Shop. Big W offers a wide array of products, including clothing, homeware, electronics, and toys, at competitive prices. Its larger store footprint and brand recognition pose a challenge to The Reject Shop's market share.

    3. Target: Target's strategy of offering affordable yet stylish products makes it a strong competitor for The Reject Shop. With a diverse range of merchandise catering to various customer needs, Target's presence in both metropolitan and regional areas adds to its competitive advantage.

    Other Competitors

    Apart from these major players, The Reject Shop faces competition from other retailers operating in the discount and variety store segment. These include:

    1. Daiso: Originating from Japan, Daiso offers a unique shopping experience with a vast range of products priced at $2.80. Its focus on Japanese culture-inspired goods and quirky merchandise attracts a niche customer base seeking affordable novelty items.

    2. Cheap as Chips: As the name suggests, Cheap as Chips competes on price, offering customers a wide range of products at extremely low prices. With a strong presence in regional areas of Australia, Cheap as Chips poses a threat to The Reject Shop's market share in these locations.

    3. Crazy Clark's: Operating primarily in Queensland, Crazy Clark's is a discount variety store targeting budget-conscious shoppers. With a focus on household essentials, party supplies, and seasonal items, Crazy Clark's competes directly with The Reject Shop in specific markets.

    4. Bargain City: This discount retailer offers a range of products at heavily discounted prices. Bargain City's emphasis on providing high-value deals attracts customers looking for low-cost alternatives, which can impact The Reject Shop's market share in areas where both stores are present.

    Overall, The Reject Shop faces competition from a range of companies, both nationally and regionally. To stay competitive, it needs to continually adapt its product offerings, pricing strategies, and customer experience to retain and attract customers in this highly competitive retail landscape.

    The Reject Shop SWOT Analysis


    1. Low prices: The Reject Shop is known for offering products at highly competitive prices, attracting budget-conscious consumers. This strategy allows the company to capture a large market share and maintain customer loyalty.

    2. Wide product range: The company offers a diverse range of products across various categories, including household essentials, groceries, stationery, toys, and seasonal goods. This extensive product range appeals to a wide customer base and increases the likelihood of repeat purchases.

    3. Strong brand reputation: The Reject Shop has established a strong brand reputation for providing value for money and being a one-stop shop for everyday needs. The brand is widely recognized and trusted by customers, giving the company a competitive edge in the market.

    4. Efficient supply chain: The company has a well-developed and efficient supply chain system, which allows it to source products at lower costs and maintain consistent availability of stock. This ensures that customers can find their desired products in-store, enhancing their shopping experience.


    1. Limited online presence: The Reject Shop has been slow in adapting to the growing trend of online shopping. Its online platform is limited, which may hinder its ability to reach a wider customer base and compete with online retailers.

    2. Store layout and organization: Some customers have reported dissatisfaction with the store layout and organization, finding it difficult to navigate and locate specific products. This may result in a less enjoyable shopping experience and potentially lead to lost sales.

    3. Reliance on discounted pricing: While low prices are a strength, the company's heavy reliance on discounted pricing may impact its profit margins. It can be challenging to maintain profitability if the discounting strategy is not balanced with other revenue-generating initiatives.


    1. E-commerce expansion: Investing in online platforms and improving the company's online presence can tap into the growing popularity of online shopping. This would allow The Reject Shop to reach a wider customer base and increase sales.

    2. Private label development: Developing and promoting private label products can increase profit margins and differentiate the company from competitors. By offering unique and quality private label products, The Reject Shop can strengthen customer loyalty and increase its market share.

    3. Expansion into new markets: The company has the opportunity to expand its operations into untapped markets, both domestically and internationally. By identifying areas with limited competition or high demand for discounted products, The Reject Shop can increase its market reach and revenue.


    1. Intense competition: The discount retail sector is highly competitive, with both traditional brick-and-mortar stores and online retailers vying for market share. The Reject Shop faces the threat of losing customers to competitors who may offer similar products at lower prices or a more convenient shopping experience.

    2. Economic downturns: The company's performance is vulnerable to economic downturns, as customers may reduce discretionary spending and opt for cheaper alternatives. During periods of economic instability, consumers may prioritize essential purchases over discretionary items, impacting The Reject Shop's sales.

    3. Changing consumer preferences: Consumer preferences and shopping habits are continually evolving. The company must stay attuned to emerging trends and adapt its product offerings and marketing strategies accordingly. Failure to do so may result in a decline in customer interest and loss of market share.

    Key Takeaways

    • The ownership of The Reject Shop is publicly traded, meaning it is owned by a diverse group of shareholders who hold shares in the company.
    • The mission statement of The Reject Shop is to provide customers with quality merchandise at low prices, offering a wide range of everyday needs and wants.
    • The main source of revenue for The Reject Shop comes from the sale of discounted products, including household items, groceries, and personal care products.
    • The Reject Shop's business model canvas consists of key elements such as customer segments, value proposition, channels, customer relationships, revenue streams, key activities, key resources, and key partnerships.
    • Some of the notable competitors of The Reject Shop include other discount retailers like Kmart, Big W, and Dollar Tree.

    SWOT Analysis of The Reject Shop:

    • Strengths: Strong brand recognition, low-cost offerings, wide product range.
    • Weaknesses: Limited online presence, susceptibility to economic downturns.
    • Opportunities: Expansion into new markets, increasing demand for discounted products.
    • Threats: Intense competition from other discount retailers, changing consumer preferences.


    In conclusion, The Reject Shop is an Australian discount variety store chain that has been in operation since 1981. The ownership of the company is publicly traded on the Australian Securities Exchange, allowing individuals and institutional investors to own shares.

    The mission statement of The Reject Shop is to provide customers with a wide range of quality merchandise at affordable prices. This mission is reflected in their business model and the way they operate their stores.

    The main source of revenue for The Reject Shop comes from the sale of various products, including household items, healthcare products, groceries, and seasonal goods. They aim to keep their prices low by sourcing products directly from manufacturers and reducing operational costs.

    The Reject Shop's business model canvas can be explained through its key activities, such as purchasing and sourcing products, managing inventory, store operations, and marketing and promotions. These activities are supported by key resources, such as its supply chain network, distribution centers, and a team of dedicated employees.

    In terms of competition, The Reject Shop faces competition from several other discount variety store chains in Australia, including Kmart, Big W, and Dollar Tree. These companies offer similar products at competitive prices, creating a challenging market environment for The Reject Shop.

    Finally, a SWOT analysis of The Reject Shop reveals its strengths, weaknesses, opportunities, and threats. Some of its strengths include a strong brand presence, a wide range of products, and a loyal customer base. However, weaknesses such as limited online presence and potential supply chain disruptions could pose challenges. Opportunities for growth may arise from expanding into new markets or enhancing their online capabilities. On the other hand, threats may include increasing competition and economic downturns.

    Overall, The Reject Shop has established itself as a reputable discount variety store in Australia, constantly striving to offer affordable products to its customers. With a solid business model and a focus on customer satisfaction, the company is well-positioned to navigate the ever-changing retail landscape.


    What are 4 examples of threats in SWOT analysis?

    1. Competitive threats: These can include new or existing competitors who offer similar products or services, potentially leading to a decrease in market share or loss of customers.

    2. Economic threats: Economic factors such as recessions, inflation, or fluctuating exchange rates can pose threats to a business. These factors can impact consumer spending, increase costs, or affect the availability of resources.

    3. Technological threats: Rapid advancements in technology can make existing products or services obsolete, or require significant investments to keep up with competitors. Failure to adapt to technological changes can negatively impact a business.

    4. Regulatory threats: Changes in laws, regulations, or industry standards can pose threats to a business, especially if they result in increased compliance costs or limit certain business practices. Failure to comply with regulations can lead to legal penalties or damage to the company's reputation.

    What are 5 examples of weakness in SWOT analysis?

    1. Lack of expertise or skills in a certain area: This weakness refers to a lack of knowledge, experience, or training that may hinder the organization's ability to compete effectively in the market.

    2. Insufficient financial resources: This weakness can include limited capital, high debt levels, or low cash flow, which may restrict the organization's ability to invest in growth opportunities or respond to market changes.

    3. Weak brand or reputation: A negative perception of the organization or its products/services can be a weakness, as it may impact customer loyalty, trust, and market share.

    4. Inefficient processes or operations: This weakness refers to ineffective or outdated systems, procedures, or workflows that can lead to inefficiencies, higher costs, and lower productivity.

    5. Dependence on a single customer or supplier: Relying heavily on a single customer or supplier can be a weakness, as any disruption in the relationship or changes in their behavior can significantly impact the organization's revenue or supply chain.

    What are weakness and opportunities in SWOT analysis?

    Weaknesses in a SWOT analysis refer to the internal factors that hinder the organization's progress or development. These weaknesses can include:

    1. Lack of expertise or skills within the organization.
    2. Limited financial resources or high debt.
    3. Inefficient or outdated processes or systems.
    4. Poor reputation or brand image.
    5. Low employee morale or high turnover.
    6. Limited product range or narrow target market.
    7. Weak distribution channels or poor logistics.

    Opportunities in a SWOT analysis refer to the external factors that can be advantageous for the organization. These opportunities can include:

    1. Emerging markets or untapped customer segments.
    2. Technological advancements that can improve operations or create new products/services.
    3. Changes in regulations or policies that favor the organization.
    4. Strategic partnerships or collaborations with other companies.
    5. Growing demand for a specific product or service.
    6. Shifting consumer trends or preferences.
    7. Mergers or acquisitions that can expand the organization's reach.

    It is important for organizations to identify their weaknesses and opportunities to develop strategies that leverage opportunities and address weaknesses effectively.

    What is a SWOT analysis for a seller?

    A SWOT analysis for a seller refers to the evaluation of a seller's strengths, weaknesses, opportunities, and threats in the context of their business. It helps sellers to assess their current position, identify areas for improvement, and devise strategies to capitalize on opportunities and mitigate threats. Here is a breakdown of each element in a SWOT analysis for a seller:

    1. Strengths: These are the seller's internal factors that give them an advantage over competitors. It could include factors such as a unique product or service offering, a strong brand reputation, efficient supply chain management, skilled sales team, or superior customer service.

    2. Weaknesses: These are the internal factors that put the seller at a disadvantage compared to competitors. Weaknesses could include lack of market presence, limited resources, outdated technology, poor product quality, or inadequate marketing strategies.

    3. Opportunities: These are external factors that a seller can leverage to their advantage. Opportunities could arise from emerging market trends, changes in consumer behavior, new target markets, collaborations or partnerships, technological advancements, or favorable economic conditions.

    4. Threats: These are external factors that pose challenges or risks to the seller's business. Threats could include intense competition, changing market trends, economic downturns, government regulations, negative consumer perception, or disruptive technologies.

    By conducting a SWOT analysis, sellers can gain a comprehensive understanding of their business environment and make informed decisions to enhance their competitive advantage.

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