The Reject Shop plans customer loyalty program, insights effort

ASX-listed value retailer details customer initiatives as part of full-year results announcement

The Reject Shop is launching a new loyalty program and is actively looking to capture data on the shopping habits and category interests of customers as part of ongoing growth strategy efforts.

The news was revealed as the ASX-listed discount retailer announced its full-year results to 30 June 2018. Full-year sales were flat, up just 0.8 per cent year-on-year to $800.3 million over a comparable period, while EBIT leapt by 30.9 per cent to $24.3 million. Net profit after tax was $16.6 million, an increase of 34.3 per cent

One of the two key pillars of The Reject Shop’s plans to drive sustainable sales growth is its ‘brilliant basics’ strategy, based around improving product pricing and differentiation as well as in-store experience using customer feedback. In its full-year report, managing director, Ross Sudano, said the goal is to consistently grow sales based on customer insights in order to meet changing purchasing motivations and simplify experiences for consumers.

To do this, The Reject Shop said it’s spent the past three years investing in people capability, systems and processes.

Driving both the capture and utilisation of insights is the retailer’s Savvy Shoppers database, which has now reached 1 million consumers. Off the back of this, the group plans to launch a loyalty program during the first half of the 2019 financial year to reward customer loyalty while also securing data on shopping habits, product purchases and category interests.

This will involve the launch of a national competition in Q1, encouraging customers to shop, scan and win.

“We will then use this data to better tailor the way we communicate with our core customers,” Sudano said.

The other strategic pillar is seeking new growth opportunities, and Sudano said the team is looking at opportunities to leverage its infrastructure and assets to generate new sales and profitability. He claimed it had succeeded and identified a number of initiatives to focus on over the next three years. These encompass new categories, space optimisation, store refurbishment and different store formats.

“Having completed many of our system and process changes, we are now able to invest in taking these from ideas to actions,” Sudano said. The Reject Shop will assemble an innovation team in the first half of FY19 to build these out.

Overall, Sudano said the group was pleased to have generated strong profit growth against a particularly challenging time in the retail space and a flat overall sales result. He noted investments into its new distribution centre, simplified business operations and supply chain efficiencies specifically for the operating profit gains over the past year.

“Our focus on executing our customer-driven strategy is unrelenting and we completed several change projects during the year, lifting seasonal sales opportunities while also improving the in-store delivery of our merchandising strategy,” he added.

Related: Teague leaves Kmart, joins The Reject Shop board

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Like we have been growing in technology since the first industrial revolution and never stopping but when it comes to businesses around t...

Bhooshan Shetty

Predicting the Future: Marketing science or marketing myth?

Read more

Was really informative. Customer retention is very important for companies as retaining customers are simpler compared to making new ones...

Bhooshan Shetty

Gartner survey: CMO spending hit by COVID-19

Read more

Couldn't agree more!The way AI and machine learning as evolved over these years, it has completely changed the look of marketing and cust...

Bhooshan Shetty

Marketing 2030 and the rise of the machines

Read more

JP 54, D2, and D6 EN590,JET A1 AVAILABLE ON FOB DIP AND TEST IN SELLER TANKWe Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel ...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

This article gave me a better understanding about content creation. I learned a lot like this website https://a2designlab.com/ also offer...

Ryota Miyagi

How Remedy is using digital marketing and commerce to drive conversion

Read more

Blog Posts

Life beyond the cookie: 5 steps to mapping the future of marketing measurement

​There’s no denying there’s been a whirlwind of response to the imminent demise of the third-party cookie from all parts of the industry. But as we’ve collectively come to better understand the implications, it’s clear this change is giving the digital advertising industry the opportunity to re-think digital marketing to support core industry use cases, while balancing consumer privacy.

Natalie Stanbury

Director of research, IAB Australia

Ensuring post-crisis success

The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.

Riccardo Pasto

senior analyst, Forrester

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Sign in