The Reject Shop stocks up on inventory

The Reject Shop have returned to profit and they’re carefully managing their inventory to ensure that they can meet the demand of consumers in a challenging supply chain environment. With a Coronavirus ravaging the world, there is often supply chain delays and shipping costs have sky rocketed. The Reject shop is mitigating these issues with a business transformation including increasing their inventory holdings and controlling the cost of wages.
The Reject Shop has 361 stores around the country and sells a wide variety of low priced products including food and products for the home.
The Reject shop have had two years of profit and it’s working hard towards achieving a third. It has however, been a tough start to the financial year with lockdowns forcing shutdowns of their stores across the country. Another major issue has been an increased spike in transportation costs from overseas where 60 per cent of their inventory is sourced from. The reject Shop
The Reject Shop are keen on maintaining their low price point as a differentiating factor from other retailers. This means that customers are very sensitive to prices and therefore The Reject Shop are doing all they can to keep prices low.
In real figures, The Reject Shop reduced their wages by nearly $11 million to help combat an increase in international freight costs of $9 million. Sales for the year were down 5.1 per cent to around $780 million.
Other stores that have had to pump up their inventory holdings includes Adairs. Adairs have stocked up in anticipation of further consumer focus on Home Improvement. To save when you shop at Adairs become an Adairs Linen Lovers, use Adairs vouchers for your purchase.

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Premier Investments Bid For Myer

Last month Premier Investments surprised the market when they advised that they had purchased a 16 per cent stake in Myer.
Premier Investments, owned by Solomon Lew, has revealed that they do not have any intentions to take over the Myer business which they recently bought in to. This news was not positively received by the market causing shares in Myer to drop 1% to 50.5 cents. Myer shares have still enjoyed a healthy 67 per cent rise this year, mostly due to excitement of Premier Investments taking an interest in the country.
The questions on whether Premier Investments would be making a pitch for Myer arouse after Myer engaged Luminis Partners as an advisor to the business. This engagement is usually an indication that a company believes that another company is interested in a takeover at some stage soon and they need to take a defensive position.
Myer share prices have also risen because of a better trading performance. Research conducted by Bloomberg of the market analysis estimates that Myer will achieve an underlying profit of over $33 million for the 12 months to July. This is a huge improvement compared to last year where the company reported a loss of $11.3 million in 2019 – 2020.
Myer believes that Premier Investments are attempting to take control of the company without making an offer, instead forcing structural changes that put’s their own people in.
Premier Investments own a stable of brands including JayJays and Peter Alexander. They along with other online retailers such as Stax have had great results over the past year. Use a Stax Coupon to save when you shop at Stax online.

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Telstra looking to acquire Digicel

Australian taxpayers are likely to pay an inflated price as part of the government’s deal to subsidise a Telstra acquisition of Digicel Pacific rumoured to be to the tune of $60 million. Digicel Pacific is a critical political piece of infrastructure so the price paid for the business with be substantially more than it’s worth.
The Australian government is looking for Digicel Pacific to come into Australian hands as there would be a high risk that China would attempt to take ownership of the business and increase it’s influence in the region.
Digicel Pacific is a subsidiary of Digicel Group, an international provider of mobile services. Digicel Pacific covers Fiji, Nauru, PNG, Samoa, Vanuatu and Tonga.
Last week, Telstra confirmed to the stock exchange that the Australian Government had meetings with them to discuss the prospect of acquiring Digicel. Telstra is not overly keen on acquiring the business and has stipulated that if it were to purchase Digicel Pacific, it would need to be mostly subsidised by the government and they would also need to take on part of the risk.
Talks with Digicel Pacific are progressing but have not reached a deal as yet. Testra’s lack of interest in the project is reflected in it’s strong requirement for government backing. It will also not proceed with any deal that would not be beneficial for it’s shareholders.
If you’re looking for great deals at Telstra use a Telstra coupon code to save on your Telstra phone plans.

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