Cost cutting has begun - closing down stores, page-3

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mike31993

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14/04/19

18:52

Post #: 38134291
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Originally posted by madamswer ↑

"It looks like the cost cutting has begun, with the Closure of non performing stores and stores that have high overheads.
I know of 2 specifically that are been closed."

Trouble is, I'll wager the distribution tail of loss-making TRS stores is both fat and long, and that probably closer to 50 stores will need closing if the company was serious about restoring the lost shareholder value.

The problem is, while the more loss-making stores get shut, the better, shutting down stores is not a measure that comes for free; payments for redundancies and lease settlements would amount to several millions of dollars.

They should have started the store rationalisation process 18 months ago; instead they continued with the mindless lunacy of increasing store numbers, largely for the sake of it, evidently.

Talk about zigging when you should have been zagging.

In the meantime, this already-marginal business will be faced in coming years with higher cost inputs in the form of higher mandated wages once the new federal Labor government legislates for it.

A pretty invidious position.
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damn this is valued by morgan stanley at 1.40 when it was selling for 6 or so dollars.

TRS Price at posting: $2.45 Sentiment: None Disclosure: Not Held
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0 Great analysis

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Cost cutting has begun - closing down stores, page-3

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