I think their scale is something which will prevent new...

I think their scale is something which will prevent new operators coming in to challenge them on price. Lovisa's margin is not going to be a new competitors margin, especially in early days if they want to compete on price. Who is going to put up the kind of capital to challenge Lovisa in every mall and location they compete in this cut throat retail environment? They just bought out a failed retail chain in the EU.

In any case, the model has proven to work over a long period and its a big ocean out there, plenty of growth just in store openings. I think the model will work very well in both a high inflation and/or recessionary environment. The customer base are not mortgage holders as some seem to think here. A better model is Maccas. Look at their ever increasing profits, margins and menu prices.