The Reject Shop, an Australian discount retailer, is gearing up to expand its footprint across the country with plans to open atleast 40 new stores in 2014.
The move is said to be on the back of company’s strategy to unveil more than 80 stores in less than two years by the end of fiscal 2014.
In FY2013, the retailer opened 41 outlets, expanding its store base to over 300.
Having opened 14 new stores since July 2013, the company aims to have more than 30 new stores opened by December 2013.
The Reject Shop managing director Chris Bryce said that it was an exciting period for The Reject Shop, as the accelerated store rollout programme continues the platform development to underpin the company’s long term growth.
"It is a particularly strong achievement to have integrated an additional 41 new stores in the current year, with all of the challenges such a significant expansion presents," Bryce added.
"We are in advanced negotiations on a number of additional sites and there is a strong likelihood we will be able to secure additional stores to open in FY2014 beyond those confirmed."
For the fiscal 2013, the discount retailer has recorded a 13.3% growth to $618m, alongside 1.8% increase in comparable store sales.
Full year net profit after tax (NPAT) was reported to be about $19.5m.
"The store rollout program impacts our short term profitability as we incur necessary expansion costs. Nonetheless it provides a platform for significant growth from FY2015 onwards," Bryce explained.
"We expect solid underlying profit growth for the current year, underpinned by the extensive store opening program in FY2013 and first half FY2014, although tempered by the costs associated with the FY2014 store openings. We also expect to deliver strong profit growth in FY2015."