Discount retailer The Reject Shop has turned to a former beer chief to guide it through a profit slump that has driven its share price down 40 per cent.
South African-born Ross Sudano, who previously headed Little World Beverages, has been chosen by the retailer to replace Chris Bryce.
He has no experience in the discount store sector but Reject Shop chairman Bill Stevens said his success with the Little Creatures beer maker, and stints with adventure goods retailer Anaconda and Foodland, meant he was well prepared for the role.
"I think understanding consumers' needs and requirements and delivering an exciting and valid offer to them is exactly what retail is about and I think Ross comes up very well in that area," he told AAP.
Mr Bryce stepped down from his post in June.
Mr Sudano will take up the role on September 11, with non-executive director Denis Westhorpe filling the role until then.
Mr Sudano, whose fixed remuneration will be $650,000, said he believed there were plenty of opportunities ahead for The Reject Shop.
"I have great confidence in the discount variety sector and the long term growth prospects of Australia's retail industry," he said.
The company had been a share market darling following several years of strong growth under Mr Bryce as it pursued an ambitious roll-out strategy of new stores.
However, analysts say the roll out has come at the expense of same-store sales, which were flat in the first half of the 2013/14 year.
The company has been forced to downgrade its profit forecasts twice since the start of January.
In the meantime, its share price has fallen from more than $17 at the start of 2014 to less than $9 in June.
Mr Stevens said the Reject Shop board remained committed to the roll out strategy, though Mr Sudano will be able to take a fresh look at the company from September.
"The board believes the broad strategy is appropriate for the company, (but) clearly we've just appointed a new chief executive and we will fully consider any views he has on the strategic direction," he said.
Shares in The Reject Shop closed 23 cents, or 2.4 per cent, higher at $9.81
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