Online mattress and furniture company Koala has diverted 1400 units of returned stock from landfill into a $2 million-plus side-hustle catering to cost-conscious consumers at a time when retailers face significant headwinds.

It’s been a year since Koala launched its Second Home brand, selling returned stock at discounts of between 20 and 70 per cent operating out of an old Bunnings outlet in Campbelltown in Sydney’s south-west.