Australia The Reject Shop launches a new GROCERY line in bold competition bid
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The Reject Shop has vowed to beat Woolworths, Coles and Aldi on the price of groceries as it ramps up its war on the supermarket giants.
The Australian discount store has started stocking grocery items in a major overhaul of the brand after securing a deal with the UK's largest supermarket, Tesco.
The retailer is rolling out designated grocery aisles, selling Tesco-branded pantry items including tea, biscuits, soup, rice, pasta, baby care and a huge range of other grocery staples.
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Andre Reich, CEO The Reject Shop, announced on Thursday the store will beat its competitors' price on identical items in what will be Australia's first ever low-price guarantee on groceries.
'No one wants to be ripped off, especially for the things we must use every day. It's our job to buy bulk and pass the savings we make onto our customers,' Mr Reich told the.
'With this commitment to delivering products at the lowest price, we're proud to offer a 10 per cent discount on an item if by chance they find it at a cheaper price.'
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Mr Reich said The Reject Shop will be expanding its products to ensure shoppers have more variety.
'We've reviewed all our product to make sure only the best quality items are available and we've expanded our product offering significantly so Australians can buy high quality essentials for less,' he said.
Mr Reich previously told Daily Mail Australia shoppers are now more than ever seeking cheaper items due to the coronavirus.
'We are very excited to utilise our 354 store buying power to bring quality and innovative Tesco products to Australia, the first of which will hit all stores in early September 2020,' he said.
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'We absolutely connect with what Tesco stands for as 'a champion for customers – helping them to enjoy a better quality of life and an easier way of living,' a similar mission to ours in that we are helping Australians save more money every day.
The discount chain, which first launched four decades ago, is eyeing up the likes of Aldi and Kmart and already employs over 5,300 workers across Australia, generating more than $800million in sales each year.
With 300 new grocery products being delivered in bulk, Chief Operations Officer Dani Aquilina says huge savings are here to stay.
'What we do specifically that's different is we make sure we find the best-selling products, we buy them in big volumes so we can get the best prices and then we pass those savings on to our customers,' Ms Aquilina told.
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'It's everything from pantry staples – oil, vinegar, we've got things like rice pouches, snacks and treats - then we've also brought in a great baby range, so everything from formula to baby wipes and nappies.'
Because of Tesco's buying power, The Reject Shop has assured customers it will always be fully stocked with cheap items.
For example, Tesco's Gold Instant Coffee costs just $6 compared to Nescafe at Coles or Woolies for $9.
Tesco's microwave rice is $1.90 compared to $2.50 at Woolworths and an 88-pack of baby wipes is the same at both The Reject Shop and Coles, but the latter gives a smaller packet.
Tick Yes Marketing expert Peter Applebaum said customers should be excited.
'At the moment the Reject Shop in the Australian retail market is like a tinny up against a range of battleships,' Mr Applebaum said.
Mr Applebaum said The Reject Shop's move was 'smart' and that it is being 'nimble' by increasing market share.
'We consumers are aching for people to give us a reason why we should buy from them now,' he said.
'In the absence of that we will go for the cheapest option so if you have great prices… I'm probably more likely to shop with you than I am with someone else.'
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