Tough times ahead

THE Reject Shop has acted quickly to quash any speculation that its sales might have collapsed over Christmas, noting solid trade over December as it reconfirmed its profit outlook for the first half. The discount retailer said it expects net profit after tax for the six months to December 31 to be roughly $10.5 million. However, it faces difficult trading conditions with the retailer saying its recent sales slump had accelerated to be down 4.9 per cent since mid-October from only a 0.5 per cent fall in July-August.