TRS the reject shop limited

Ann: Change in substantial holding from IFL, page-6

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    Here's the April 2017 commentary from Perennial on their investment in TRS:

    April was a busy month for Trust activity with the large selloff in the Reject Shop creating an opportunity. Following three consecutive downgrades that wiped 49.0% off The Reject Shop’s share price during April alone, we viewed this as an opportunity to start building a position in this market-leader of everyday items that consumers need such as toiletries, cleaning products, confectionary and snack food etc. The company, whose headbuyer was replaced last October, has disappointed investors with poor earnings as the company clears out inventory that their previous buying team procured when they moved too heavily towards variety product. With a network of 350 stores and an average transaction value of $3.00, and having committed to inventory purchases, the turnaround takes time. FY18 should get some supply chain benefits from the company’s new distribution centre in Truganina, Victoria. Longer-term we see real upside should the company move to a direct-sourcing model that could materially improve their gross operating margins as we have seen with other companies who have gone this route (e.g. Super Retail Group).
 
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