Canada’s biggest discount retailer is making its move on Australia, with Dollarama beginning a sweeping takeover of The Reject Shop that will eventually see the homegrown chain disappear from shopfronts.
The Montreal-based giant has acquired The Reject Shop in a $259 million deal and is now quietly reshaping its nearly 400-store network ahead of a full rebrand expected by the end of the 2027 financial year.
Rather than an overnight switch, the rollout is deliberately slow, with new products already landing on shelves, layouts being reworked and pricing structures adjusted before any signage changes appear.
What’s changing in-store?
In practice, many shoppers may not notice the shift immediately, but the transformation is already underway inside stores. A newly revamped location in Traralgon, Victoria, has offered the clearest preview yet, with a cleaner, supermarket-style layout designed to pack in more stock and streamline browsing. This particular store also features Dollarama’s signature ‘green and yellow’ colours along the walls.
Early changes point to a broader combination of everyday essentials and seasonal items, alongside a simplified pricing model that leans more aggressively into low-cost territory.
Dollarama operates more than 1,600 stores globally and has built its reputation on ultra-cheap pricing—typically items priced at the equivalent of $5 or less.
While Australian price points won’t mirror Canada exactly, CEO Neil Rossy has signalled the company intends to “turn the heat up” on local discount heavyweights including Kmart, Big W and Target by lowering price ceilings across categories.
“We are now starting to selectively phase in Dollarama products across categories,” Rossy told investors previously, adding that pricing structures would be simplified as part of the shift.
Bigger Australian expansion plans
The long-term ambition is significant as Dollarama plans to nearly double its footprint in Australia, expanding from around 395 stores to roughly 700 by 2034, with dozens of store upgrades and new openings already flagged for the year ahead.
That growth strategy may involve some reshuffling, however, as The Reject Shop will close its busy Castle Towers branch in Sydney at the end of June while it “optimises” the network for its next phase.
For now, executives are treading carefully and emphasise there will be no sudden flip to the Dollarama brand, as stores will only rebrand once they carry a critical mass of new inventory. A spokesperson said the goal is to evolve the shopping experience “gradually and over the coming years,” keeping disruption to a minimum.
For Australian shoppers, the result could be a noticeably different kind of bargain store—less cluttered, more consistent and potentially cheaper—minus the familiar Reject Shop name above the door.
