The Reject Shop stocks up on inventory
The Reject Shop have returned to profit and they’re carefully managing their inventory to ensure that they can meet the demand of consumers in a challenging supply chain environment. With a Coronavirus ravaging the world, there is often supply chain delays and shipping costs have sky rocketed. The Reject shop is mitigating these issues with a business transformation including increasing their inventory holdings and controlling the cost of wages.
The Reject Shop has 361 stores around the country and sells a wide variety of low priced products including food and products for the home.
The Reject shop have had two years of profit and it’s working hard towards achieving a third. It has however, been a tough start to the financial year with lockdowns forcing shutdowns of their stores across the country. Another major issue has been an increased spike in transportation costs from overseas where 60 per cent of their inventory is sourced from. The reject Shop
The Reject Shop are keen on maintaining their low price point as a differentiating factor from other retailers. This means that customers are very sensitive to prices and therefore The Reject Shop are doing all they can to keep prices low.
In real figures, The Reject Shop reduced their wages by nearly $11 million to help combat an increase in international freight costs of $9 million. Sales for the year were down 5.1 per cent to around $780 million.
Other stores that have had to pump up their inventory holdings includes Adairs. Adairs have stocked up in anticipation of further consumer focus on Home Improvement. To save when you shop at Adairs become an Adairs Linen Lovers, use Adairs vouchers for your purchase.