Retailer’s woes talk rejected
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, which is under siege by businessman Raphael Geminder who late last year launched a $78 million takeover bid for the chain, said it expects net profit after tax for the six months to December 31 to be roughly $10.5 million.
The Reject Shop chairman Bill Stevens (above) said the result was “consistent with the guidance provided in the trading update issued by The Reject Shop on October 17” and also reaffirmed the company’s target statement of December 3.
However, The Reject Shop is still facing difficult trading conditions with the retailer in December saying that 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 sales over July and August.