The Outlet will open its doors this week and is set to heat up competitions within the country’s discount retail sector.

The launch comes after Tahua Group bought sporting store Torpedo7 for $1 from The Warehouse Group last year. Now it is effectively set to compete against the Red Sheds.

Tahua, which also operates Starbucks, Burger King, Popeyes Chicken and Number One Shoes in New Zealand, previously planned to transform 10 of Torpedo7’s stores into a new retailer.

The group said in a press release earlier this month that The Outlet would offer a constantly refreshed selection of apparel, footwear, and gear from leading and emerging brands at “unbeatable prices”.

By sourcing end-of-season styles, overstock and exclusive deals from trusted brands, the chain brings customers the same great quality at everyday prices well below typical retail, it added.

The first 10 The Outlet stores open today in Whangarei, Mt Wellington, Botany, Hamilton, Tauranga, Napier, New Plymouth, Petone, Christchurch and Dunedin, the NZ Herald revealed.

The chain will be giving away $50,000 in cash prizes to celebrate the launch.

Tahua Group has also announced the closure of Torpedo7 stores in Rotorua and Westgate as part of a “forward-looking strategy to build a more resilient and sustainable business model”.