Canadian retail giant Dollarama has made a move that could reshape the discount shopping scene in Australia. In a low-key but significant development, one of the country’s best-known budget chains is changing hands.
As reported by 7NEWS and confirmed by company announcements, the deal involves hundreds of stores and a long-term expansion plan. While details of the transaction suggest ambitious goals for growth, local management and operations are expected to remain in place.
The acquisition marks another step in an ongoing trend of international retailers eyeing Australia as a key market for value-focused offerings.
A Strategic Expansion Into the Australian Market
Dollarama announced it will acquire The Reject Shop for $6.68 per share, significantly higher than the retailer’s closing share price of $3.15 prior to the announcement.
The acquisition signals a key milestone for Dollarama, which is aiming to expand its footprint beyond Canada and Latin America, where it already operates in countries such as Colombia, Guatemala, and El Salvador.
The move is expected to bolster Dollarama‘s international strategy while offering a new phase of growth for The Reject Shop, a long-standing discount chain with a network of 390 stores across Australia.
The Reject Shop, previously majority-owned by Raphael Germinder’s Kin Group, has been a well-known name in Australian retail for decades.
Offering a broad range of low-cost goods—from cleaning products to storage boxes—the company has weathered numerous challenges, including rising competition from online players such as Temu and Shein.
According to Steven Fisher, chairman of The Reject Shop’s board, the acquisition represents a “milestone” for the business, aligning with its goal to deliver increased value to shareholders.
Ambitious Growth Targets Set by Dollarama
Following the acquisition, Dollarama has set a long-term goal of growing The Reject Shop’s store network from 390 to approximately 700 stores by 2034. The Canadian retailer sees substantial untapped potential in the Australian market for discount variety retailing.
In a statement, Dollarama said it believes the current footprint is just the beginning of what could become a much broader retail presence.
Neil Rossy, CEO of Dollarama, emphasized the company’s intention to work closely with the existing Australian management team and its 5,000+ employees. He described the acquisition as the beginning of a “new chapter” in Dollarama’s international growth journey.
This commitment to local leadership is likely to ensure a smoother transition and reduce operational disruptions in the short term.
Competitive Pressures Remain a Key Challenge
While the acquisition opens the door to growth, the retail sector in Australia remains under pressure. The rise of global online retailers and changing consumer behavior have made it increasingly difficult for brick-and-mortar discount chains to maintain market share.
Whether Dollarama’s scale, sourcing capabilities, and operational expertise can help The Reject Shop thrive amid these challenges remains to be seen.
The deal reflects Dollarama’s confidence in its ability to replicate its domestic success overseas. With a proven track record in cost-efficient retailing and international expansion, the Canadian company is betting on Australia as its next major growth frontier.
