Sunday 26 August 2012

Reject Shop Rejects Online

Everybody says retailers need to go online, right? Well, not the Reject Shop who say that they simply can't make a good business case for going online.

The Reject Shop can probably remain comfortable with their decision as they report profit rising by 35.6% and plans for 20 new stores this financial year. They are one of the few retailers around who feel that they just need to focus on bricks-n-mortar stores.

As one commentator said - “If The Reject Shop relies on impulse purchase customers,who might not know quite what they’re looking for, or who want low-value, high-volume things like birthday decorations, it might be difficult to see how they could gain from online.”

Many retail categories do rely on an online presence, particularly things like electronic goods where price comparison is so critical, but the Reject Shop shows that online is not everybody's priority.