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The Reject Shop launches a new GROCERY line in competition against Woolworths, Coles and Aldi

The Reject Shop has vowed to beat Woolworths, Coles and Aldi on the price of groceries as it ramps up its war on the supermarket giants.   

The Australian discount store has started stocking grocery items in a major overhaul of the brand after securing a deal with the UK’s largest supermarket, Tesco.

The retailer is rolling out designated grocery aisles, selling Tesco-branded pantry items including tea, biscuits, soup, rice, pasta, baby care and a huge range of other grocery staples. 

Andre Reich, CEO The Reject Shop, announced on Thursday the store will beat its competitors’ price on identical items in what will be Australia’s first ever low-price guarantee on groceries. 

The discount store started stocking grocery items after securing a deal with the UK's largest supermarket Tesco - and it means huge savings for shoppers

The discount store started stocking grocery items after securing a deal with the UK’s largest supermarket Tesco – and it means huge savings for shoppers 

Customers could soon be seeing cheaper items from big brand names such as Coca-Cola, Colgate, Mars, Morning Fresh, Uncle Toby's, Cadbury and Rexona

Customers could soon be seeing cheaper items from big brand names such as Coca-Cola, Colgate, Mars, Morning Fresh, Uncle Toby’s, Cadbury and Rexona 

‘No one wants to be ripped off, especially for the things we must use every day. It’s our job to buy bulk and pass the savings we make onto our customers,’ Mr Reich told the Herald Sun

‘With this commitment to delivering products at the lowest price, we’re proud to offer a 10 per cent discount on an item if by chance they find it at a cheaper price.’ 

Mr Reich said The Reject Shop will be expanding its products to ensure shoppers have more variety. 

‘We’ve reviewed all our product to make sure only the best quality items are available and we’ve expanded our product offering significantly so Australians can buy high quality essentials for less,’ he said.    

The Reject Shop CEO Andre Reich, said this exciting expansion of products will see shoppers having more variety

The Reject Shop CEO Andre Reich, said this exciting expansion of products will see shoppers having more variety 

Mr Reich previously told Daily Mail Australia that shoppers are now more than ever seeking cheaper items due to the coronavirus

Mr Reich previously told Daily Mail Australia that shoppers are now more than ever seeking cheaper items due to the coronavirus

Mr Reich previously told Daily Mail Australia shoppers are now more than ever seeking cheaper items due to the coronavirus. 

‘We are very excited to utilise our 354 store buying power to bring quality and innovative Tesco products to Australia, the first of which will hit all stores in early September 2020,’ he said.

‘We absolutely connect with what Tesco stands for as ‘a champion for customers – helping them to enjoy a better quality of life and an easier way of living,’ a similar mission to ours in that we are helping Australians save more money every day. 

The discount chain, which first launched four decades ago, is eyeing up the likes of Aldi and Kmart and already employs over 5,300 workers across Australia, generating more than $800million in sales each year. 

With 300 new grocery products being delivered in bulk, Chief Operations Officer Dani Aquilina says huge savings are here to stay. 

The products are currently available at all stores in New South Wales, Canberra and Queensland, meanwhile Victoria will have the range by mid September

The products are currently available at all stores in New South Wales, Canberra and Queensland, meanwhile Victoria will have the range by mid September

Packets of rice cakes will hit the shelves for $2 and Tesco biscuits are on offer and will range from $2 to $2.50

Packets of rice cakes will hit the shelves for $2 and Tesco biscuits are on offer and will range from $2 to $2.50

‘What we do specifically that’s different is we make sure we find the best-selling products, we buy them in big volumes so we can get the best prices and then we pass those savings on to our customers,’ Ms Aquilina told A Current Affair.

‘It’s everything from pantry staples – oil, vinegar, we’ve got things like rice pouches, snacks and treats – then we’ve also brought in a great baby range, so everything from formula to baby wipes and nappies.’ 

Because of Tesco’s buying power, The Reject Shop has assured customers it will always be fully stocked with cheap items.

For example, Tesco’s Gold Instant Coffee costs just $6 compared to Nescafe at Coles or Woolies for $9.

Australian bargain hunters are flocking to discount chain The Reject Shop as the first Tesco-branded grocery items finally hit the shelves (pictured: Tesco rice)

The microwavable rice will be $1.90 (pictured)

Australian bargain hunters are flocking to discount chain The Reject Shop as the first Tesco-branded grocery items finally hit the shelves (pictured: Tesco rice)

Tesco’s microwave rice is $1.90 compared to $2.50 at Woolworths and an 88-pack of baby wipes is the same at both The Reject Shop and Coles, but the latter gives a smaller packet.

Tick Yes Marketing expert Peter Applebaum said customers should be excited. 

‘At the moment the Reject Shop in the Australian retail market is like a tinny up against a range of battleships,’ Mr Applebaum said. 

Mr Applebaum said The Reject Shop’s move was ‘smart’ and that it is being ‘nimble’ by increasing market share.

‘We consumers are aching for people to give us a reason why we should buy from them now,’ he said.

‘In the absence of that we will go for the cheapest option so if you have great prices… I’m probably more likely to shop with you than I am with someone else.’  

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