The Reject Shop's profits boom as consumers look for bargains

The Reject Shop has seen its profits boom as the growing number of frugal Australian shoppers look for bargain deals.

New figures show that the discount chain achieved a net profit of $23.351 million in 2009/10 – up 22.9 per cent on the year before.

The result is all-the-more impressive in light of the difficult retail market in general, with the Reject Shop managing to open 27 new stores during the year.

Managing director Chris Bryce said the chain's long-term plan is to double its total number of stores to 400 as more consumers search for discounts.

"I think people were generally careful with their money last year and how that progresses over the next six-12 months depends on the confidence they have," he added.

"At the moment, they are more frugal about spending (money on goods) they don't 100 per cent need."

The growing frugality among shoppers has prompted some to compare debit cards in search of the best deals. Last week, it was confirmed that Australian consumers are now able to buy from up to 300,000 international stores that were previously inaccessible following the launch of the shopping site by PayPal.

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