You might imagine high inflation and interest rates would drive a rush towards discount stores. But the sector has other challenges.
The discount retail chain has lost its second chief executive in less than a year,even as it posted improvements in its store sales.
The discount retail chain has been forced to temper investor expectations after persistently weak sales at its inner city and shopping centre stores.
Discount retailer The Reject Shop has seen sales rocket upwards in the last three weeks as Australians flock to stores in search of supplies.
The Reject Shop has apologised for its"unacceptable"performance as it flags a new CEO pick this year and a non-compromising approach to exiting leases.
The head of the struggling discount variety store lamented'our worst year',but would not be drawn on whether it should have accepted a takeover bid earlier this year.
The Reject Shop will part ways with its chief executive and has revealed it is heading for a full-year loss,as sales evaporate and it cuts prices amid fierce competition from supermarkets and department stores.
Packaging billionaire Raphael Geminder has dismissed The Reject Shop's assurances that its profitability remained stable through the crucial Christmas trading period,and demanded the discount store release its sales figures.
Packaging tycoon Raphael Geminder has intensified his raid on budget retailer The Reject Shop,saying it is in"serious decline"and calling on its management to update shareholders on its latest trading performance.
The $78 million takeover bid for The Reject Shop is opportunistic and undervalues the value of the discount retail chain,according to its chairman.
The billionaire Geminder family has lobbed a $78 million takeover bid for The Reject Shop,warning the ASX-listed discount chain's profitability was at risk of collapse under current ownership.