The Reject Shop has been forced to temper investor profit...

The Reject Shop has been forced to temper investor profit
expectations after seeing persistently weak sales at its inner city and
shopping centre stores, sending its shares plummeting.The
retailer, which sells varied discount homegoods through its 359 stores
around the country, told shareholders on Friday morning that revenue
growth had continued to be challenging over recent months as a number of
stores had continued to trade “well below” pre-COVID levels.
Analysts had expected about $795 million in revenue and $12.2 million in earnings, meaning the company’s new forecast is as much as 35 per cent below market expectations. Shares in the business fell as much as 13 per cent on Friday on the news.

Many other retailers - including department store chain Myer and supermarket giant Coles - have suffered in the pandemic as fewer shoppers venture into CBDs and shopping centres.

The Reject Shop warned its trading would likely remain “unpredictable” in June due to the snap lockdown in Victoria and like other retailers noted it doesn’t expect sales to normalise until more of the population is vaccinated against COVID-19.