Canadian buyer plans to disrupt discount retail market.

 

The entry into Australia of Canadian discount retailer Dollarama could be a threat to Officeworks’ stranglehold on the retail stationery market.

 

The Montreal-based bargain chain has made a $259 million bid for The Reject Shop, which has around 390 stores nationally, more than 4000 employees and FY24 sales of more than $850 million.

 

Dollarama plans to repeat its global marketing strategy by optimising the merchandising mix, changing price point strategy and optimising store layout.

 

In an investor call, Dollarama said it sees the Australian discounter store market as under-penetrated versus Canada and plans to drive sales in stationery, kitchen and consumables, as it has done in Canada.

 

The Canadian company said it plans to open more than 300 stores by 2034 with a three to four- year transition to a new brand.

 

In recent times, Dollarama has had success in Latin America with its “best-in-class merchandising, sourcing, logistics and operational expertise” according to one analyst quoted by The Australian.