One of Australia’s best-known discount stores makes spending on staples easier for Aussies with a new alliance with a globally recognised brand. The Reject Shop has signed a new deal with UK retail juggernaut Tesco, which is in the middle of a major redesign.
It means a slew of exclusive Tesco-branded grocery products will arrive at the 354 stores across the country in The Reject Shop from this week.
The first wave of items would include prepared food, fitness, beauty and household goods, with everything from flour to tea, cookies, soups and more bound for Aussie shelves and more expected to arrive in the coming months.
The CEO of Reject Shop Andre Reich said there had been a great response from shoppers so far before any formal advertisement of the new range had rolled out, and that he expected the goods to cater to Australia’s 1,2 million British expats as well as everyday Aussies looking to save on everyday things.
He said Tesco gave consumers “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.
“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 UK grocery stores were about half the price of their Australian counterparts while they cost about a third in the US, and that the three-year Tesco deal would allow Australian shoppers to take advantage of the difference.
“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.