Red Dollar to replace The Reject Shop at prominent location ahead of Dollarama takeover
The Reject Shop is set to undergo a major rebrand, following its acquisition by Canadian company Dollarama, with stores across the country set to transition over the next several months.
However, some Sydney locals speculating the budget retailer would be replaced by its new owner at every location have been delivered a surprise.
One Reject Shop store in Sydney will be replaced by Red Dollar, not Dollarama. Nine
It’s been confirmed Red Dollar will replace The Reject Shop in Sydney’s Castle Hill.
This follows the Canadian-owned brand’s $260 million takeover in 2025, resulting in the company “optimising” existing locations ahead of a full transition from The Reject Shop to Dollarama over the next several months.
A spokesperson for Castle Towers confirmed the news to nine.com.au, adding Red Dollar’s tenure is scheduled to begin in October, and retail operations should commence before Christmas.
The Reject Shop in Castle Hill will cease operations on June 30.
A spokesperson for The Reject Shop previously told nine.com.au the closure is due to the company “transforming its business to deliver even more compelling value and convenience to Australians”.
“This includes optimising our national store network as we grow from approximately 400 stores today towards a target of around 700 stores by 2034,” they said.
“As a result, we have made the decision to close our Castle Hill location in June, and we look forward to welcoming customers until that time.
“After this date, customers can continue to shop at nearby stores, including Kellyville, Carlingford and Seven Hills.”
The company said they will continue to “invest in our stores, with plans to update the layout and shopping experience in 60–80 stores and open 15–25 net new stores across Australia this year”.
“We are also gradually introducing more lower-priced products across categories, while continuing to offer the products customers know and love.”
Castle Towers management has confirmed Red Dollar will open later this year. Jo Abi
The end of The Reject Shop brand will significantly change Australia’s discount variety store sector in Australia. The chain has been in operation since 1981 and is well-known and much loved.
It isn’t the only discount variety retailer to fall by the wayside as competition in the sector ramps up in the wake of Kmart’s expanded discount offerings, in addition to online budget offerings from the likes of Temu and Amazon.
While The Reject Shop isn’t closing – it is transitioning into Dollarama after a lucrative acquisition – other discount variety chains haven’t been so lucky.
Smart Dollar is one discount chain that didn’t survive increasing competition, calling in the liquidators in June 2025 to begin winding the business down.
Then there were the aptly-named The $2 Shop and The $2 Mega Store, which were prominent in the 1990s and 2000s.
Other discount brands that are also now defunct include Go-Lo, Crazy Clark’s, Sam’s Warehouse, Chickenfeed (in Tasmania) and Homeart.
Dollarama completed its $260m takeover of The Reject Shop in 2025. iStock Editorial
Red Dollar opened its first store in Australia in 2009 and currently operates approximately 10 locations across New South Wales.
The similarly named Red Dot operates more than 40 stores across Western Australia.
Silly Solly’s is also still in operation, spruiking itself as “Australia’s No.1 Discounter”. As of late 2025/2026, the company has 46 stores across Australia.
Silly Solly’s is famous for its ‘Nothing Over $5’ model and has implemented a massive expansion push through franchising in a bid to open even more locations nationwide.
Silly Solly's is still in operation across five states. Instagram/@sillysollysboxhill
Have you got a story? Contact reporter Jo Abi at jabi@nine.com.au.
Then there is Hot Dollar, with approximately 50 locations across the country under the Hot Dollar Group umbrella, which also includes Dollar King and Top Bargain.
Dollars and Sense is another Australian-owned chain of discount variety stores with over 20 locations across Queensland, New South Wales, and the Northern Territory.
They specialises in homeware, pet care, party supplies, and plastic storage
Finally, there’s Ten Tops, which first opened in Dubbo in 2020 and now operates 23 stores across New South Wales, Victoria and the Australian Capitol Territory with the hook “nothing over $10”.
They have rapidly expanded their physical footprint across the eastern states.
