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
cmo-xs-promo

Latest Videos

More Videos

who wants to date me I am 9 years old and i am a boy

Jeremy Hawkins

Sink a sub gaming experience signals Subway's renewed brand push

Read more

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Blog Posts

Unboxing 101 - How savvy influencer engagement can build a brand

The humble unboxing video is a powerful tool. Correctly executed, it harnesses consumer fandom, viral authenticity and brand design magic to deliver a high-impact message to a tightly targeted cohort of consumers.

Gali Arnon

Chief marketing officer, Fiverr

​Power to the people

Purpose is the ultimate statement of intent for many organisations. Why are we here? What are we trying to achieve?

Rich Curtis

CEO, FutureBrand A/NZ

The playbook to develop strategic brand moats

Warren Buffet is an unlikely ally for marketers. But his belief businesses need strategic moats that increase their value in the market while acting as barriers to competitors can offer marketers a new playbook for brand building and driving growth.

Fabian Di Marco

Founder and managing director, Tzu & Co

Sign in