For today’s price-conscious shoppers on the hunt for low prices and value for money, discount shops and discount department stores aren’t necessarily the go-to places they once were. In a retail market saturated with heavy in-store markdowns and ever-increasing online options, discount retailers are struggling to maintain their competitive edge — with one notable exception…
While bargain store Sam’s Warehouse has seen its annual customer visits decline by almost 30% over the last five years, and discount department stores Big W and Harris Scarfe have also experienced fewer annual customer visits, The Reject Shop has remained immune to this worrying trend.
On the contrary: its customers have increased and they’re visiting more often. More than a third (36%) of Australians shopped at The Reject Shop in the last 12 months (many of them more than once), equating to almost 39 million purchase occasions.
Australia’s discount stores: number of purchase occasions in an average 12 months
Source: Roy Morgan Single Source (Australia), January 2009 – December 2013, Average per 12 month n= 19,298. Base:Australians 14+
Warren Reid, Group Account Manager – Consumer Products, Roy Morgan Research, says:
“At a time when many Australian bricks and mortar retailers are reporting tough trading conditions, it’s unusual (and encouraging) to hear of a retailer with steadily growing customer numbers.
“Despite the profit downgrade recently reported by The Reject Shop, the discount store is definitely one of these retail success stories, going from strength to strength over the last few years. An unforeseen loss of inventory and distribution through flood-ravaged regions is said to have contributed to the profit downgrade; however, our latest results — revealing a 20% increase in customers and an almost 30% increase in purchase occasions since 2009 — suggest this setback may be temporary.
“What is especially noteworthy is that even though young families and seniors are the primary drivers of The Reject Shop’s increased custom, the retailer also appeals to other shoppers who don’t fall under the traditional penny-watching category. Bearing in mind that products sold by The Reject Shop are comparable in price and quality to similar products purchased via the web by thrifty online shoppers, this broader appeal isn’t surprising. Why pay more than you have to?”
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Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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