The Reject Shop to disappear by 2027 in Dollarama takeover

Australia, brace yourselves. As the calendar flips to a new year, a retail institution is quietly entering its final act.

The Reject Shop, that beloved purveyor of bargains and unexpected treasures, is on the precipice of extinction.

With rebranding to Canadian discount giant Dollarama set to commence from 2027, 2026 isn’t just another year – it could very well be your last full year to experience The Reject Shop as you know it – at least for some stores.

While the Reject Shop remains tight-lipped about which of its 395 Aussie stores would be rebranded first, one thing is certain; this isn’t a sudden flip of a switch; it’s a slow, deliberate fade-out designed to maximise impact and minimise disruption.

“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.

“Gradually and over the coming years, we will be evolving the product mix and shopping experience in The Reject Shop stores, always with the customer in mind.

“As this is a multi-year process, there are no imminent banner conversions planned. Only once a location contains a critical mass of Dollarama products, which will be phased in methodically and gradually, do we intend to bring it under the Dollarama banner.”

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The Reject Shop’s days of looking like this are numbered as its parent company, Dollarama, has revealed major changes are already happening.

This means that right now, in your local Reject Shop, a quiet revolution is underway.

New stock, new pricing structures, and a subtle shift in product focus are being introduced behind the familiar facade.

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It’s a strategic infiltration, designed to familiarise Australian shoppers with the Dollarama offering before the full reveal.

The red and white might still be there, but the Canadian DNA is already taking root.

This methodical approach ensures a seamless transition, avoiding empty shelves or confused customers.

It’s about building the new brand’s presence from the inside out, ensuring that when the sign finally changes, the store is already a fully functioning Dollarama.

The Dollarama deluge: What’s coming

Dollarama, with its 1600-plus stores, is Canada’s undisputed king of “items for $5 or less.” While a direct price match for Australia isn’t confirmed, Rossy has strongly indicated a significant lowering of price points to “turn the heat up” on local competitors like Kmart, Big W, and Target.

A general view of a Dollarama logo and store in South Edmonton.

UNSW consumer behaviour researcher Professor Nitika Garg sees this as a win for the consumer.

“A lot of households are struggling to make ends meet right now, and the cheaper options are attractive,” Garg told Yahoo Finance.

“It will give competition to Kmart for this segment because they would look at their options when shopping.

“While the cost-of-living crisis is going on, you can see that it will work.”

A retail landscape remade

Beyond the aisles, this acquisition is set to redraw Australia’s retail property map.

Dollarama isn’t just rebranding; it’s expanding, aiming to grow from 395 to a staggering 700 stores by 2034.

This means a nationwide hunt for new sites, fundamentally reshaping shopping strips and centres across the country.

Mansi Shah, a regular customer of Rundle Mall’s Reject Shop, is disappointed the store is closing. Picture: Darren Chaitman

For commercial landlords, this signals a significant investment.

Dollarama is committed to transforming and modernising these spaces to deliver the “convenient and consistent shopping experience” it’s renowned for.

The disappearance of The Reject Shop, a four-decade-old anchor in many communities, will force a recalibration of how these retail sites are perceived and marketed.

So, as 2026 unfolds, pay close attention to your local Reject Shop.

It’s more than just a store; it’s a living testament to a brand in its twilight.