Reject Shop drops as favoured ‘cheap’ option for Aus shoppers
The Reject Shop has dropped in the perception of Aussies when it comes to offering low prices. Picture: Supplied
Online global retailers like Temu and Shein are changing the perceptions of Aussie shoppers, with many considering them the cheaper option compared to traditional local discount brands.
According to new research by Roy Morgan, local shoppers are shifting towards online shopping for cheaper items, shunning local discount retailers.
The Reject Shop suffered the biggest drop, with an 18 per cent decline in “low price perception” since 2020.
This comes as Kmart and Big W still continue to lead on low-price perception, with 58 per cent and 45 per cent of Australians respectively linking these brands to “low prices”, even though Big W dropped about 10 per cent.
“However, over the past five years, most traditional discount retailers have seen declines in this measure, while Amazon, Temu, and Shein have recorded notable gains,” Roy Morgan revealed in a statement.
Online shopping outlets Temu and Shein are becoming more popular options.
MORE: Aus retail under siege: Temu, Shein’s brutal impact
Since 2024 alone, Temu’s “low price” perception rose from 34 to 42 per cent, while Shein jumped four points from 23 to 27 per cent.
Target was down by about seven per cent, while Amazon was up seven per cent during the same period.
“Cheap is getting even cheaper. The rise of ultra-low-cost online marketplaces is recalibrating what consumers now consider a ‘normal’ price,” Catherine Jolley, Roy Morgan’s head of retail & consumer products, said.
“Players like Temu, Shein, Amazon and soon Dollarama, are resetting those anchors and dragging price expectations down across the board.”
How Aussies associate each store with “low prices”. Picture: Roy Morgan
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The Reject Shop has been acquired by Canadian discount giant Dollarama, which will commence its rebranding of the popular Aussie brand from 2027.
“Through The Reject Shop, Dollarama looks forward to bringing even more compelling value to Australian consumers by offering a broad selection of everyday and seasonal products at low price points and a consistent shopping experience,” a spokesman told News Corp in October.
