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

More Videos

More Brand Posts

What are Chris Riddell's qualifications to talk about technology? What are the awards that Chris Riddell has won? I cannot seem to find ...

Tareq

Digital disruption isn’t disruption anymore: Why it’s time to refocus your business

Read more

Enterprisetalk

Mark

CMO's top 10 martech stories for the week - 9 June

Read more

Great e-commerce article!

Vadim Frost

CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes

Read more

Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...

jackson13

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.

Ella Hall

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in