The Reject Shop confirms store closure following Dollarama takeover

The Reject Shop has confirmed the closure of one of its busiest Sydney locations.

The discount retailer will cease operations at Castle Towers shopping centre in Castle Hill at the end of June.

A spokesperson for The Reject Shop has told nine.com.au the closure of the Castle Hill store 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".

READ MORE: Taco Bell Australia changes hands a month before deadline

READ MORE: The 'luxury' item disappearing from Aussie Easter baskets

READ MORE: Nestle releases up date after 12T of KitKats are stolen

"We are also gradually introducing more lower-priced products across categories, while continuing to offer the products customers know and love."

Employees at the Castle Hill store have been offered the option of applying to transfer to alternate The Reject Shop locations.

Castle Towers management told nine.com.au they haven't confirmed which business will replace The Reject Shop but "look forward to welcoming a new retailer later in the year, ahead of the Christmas trading period".

The closure of The Reject Shop in Castle Hill comes after the Australian discount retailer was bought out by Canadian chain Dollarama.

Dollarama completed its acquisition of The Reject Shop in July 2025 for $259 million, taking over more than 390 stores nationwide.

The deal was announced in March 2025, and by August 2025, it was confirmed that The Reject Shop stores would be rebranded to Dollarama, with the transition reportedly commencing in 2026. Dollarama products will also start to be phased in.

It isn't known if the closure of The Reject Shop at Castle Hill is part of Dollarama's takeover plans.

It also isn't known if more The Reject Shop locations will be closed.

Dollarama has been contacted for comment.

Dollarama is a wholly publicly owned company run by its founding family, the Rossys. Larry Rossy is acting as executive chairman while his son Neil Rossy became chief executive in 2016. He is also the president.

At the time of Dollarama's purchase of The Reject Shop, Neil Rossy said they were "pleased to officially welcome the TRS team to Dollarama".

"Expanding our international reach supports our long-term growth strategy, and we are thrilled to be embarking on this exciting new chapter with TRS's local leaders and more than 5000 employees," he said.

"By working together and applying Dollarama's strengths in sourcing, merchandising and retail operations, we are well positioned to deliver compelling value to Australian consumers and to drive the expansion of our new Australian growth platform over the long term."

The Reject Shop and Dollarama have much in common. Both budget brands are known for stocking food, snacks, gifts, cards, party items, health and beauty products, cleaning supplies, storage, kitchenware, homewares and seasonal items as well as speciality ranges.

They also stock consumable products including cleaning supplies, basic health and beauty products, pet food, confectionery, drinks, snacks and other food products.

In its quarterly report to investors in 2025, Dollarama hinted at the future of the chain, noting the goals of "a new price point strategy", as well as converting existing The Reject Shop store design and layout.

"This will be a gradual process, which will continue through to the end of fiscal 2027," he said.

"Along the way, we will be simplifying the price point structure, including lowering the current pricing ceiling."

FOLLOW US ON WHATSAPP HERE: Stay across all the latest in celebrity, lifestyle and opinion via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.