The Reject Shop has implemented a round of redundancies impacting its Australian head office, a year after its acquisition by Canadian retailer Dollarama for $260 million. The company stated that recent organizational changes were part of a transformation, involving continued hiring and a limited number of redundancies.
A spokesperson for The Reject Shop indicated that decisions affecting roles were carefully considered, with redeployment opportunities and support offered to affected employees. "Recent organisational changes supporting this transformation included continued hiring and only a limited number of redundancies," the spokesperson said.
One former employee, Jodi Long, who held the position of property project manager, described being made redundant in July via a brief Microsoft Teams call. Ms. Long, who had been recruited by The Reject Shop five months prior, recounted being read a script and offered a different position with a significantly reduced salary. She expressed her feelings of shock and disappointment in a LinkedIn post, describing the experience as "cold" and a "private shame."
This development follows a period of rebranding for some The Reject Shop locations, which are transitioning from the company's signature red and yellow to Dollarama's green and gold branding. The full transition is anticipated to conclude by 2027, with approximately 80 stores slated for rebranding this year. Dollarama also plans to open between 15 and 25 new stores by the end of 2026, with a long-term goal of reaching 700 stores by 2034.
Retail experts suggest that this expansion could significantly impact Australia's retail landscape. Gary Mortimer, a retail expert, noted in May that Dollarama's presence in Australia is set to shake up the discount department store sector. He also highlighted the company's global bargaining power, derived from its extensive network of stores in Canada, as a factor that could drive down prices in Australia and provide a competitive advantage.
While branding is being updated, remaining stores are expected to continue operating under The Reject Shop banner during the transition. A spokesperson confirmed that no further organizational changes or redundancies are planned at this time.