Dollarama vs Reject Shop

pCap raised Dollarama brand from Canada on few occasions.

Canada is quite similar in terms of population and challenges in terms of supply chain.
However Dollarama does 3.o billion sales annualy vs 800 mil of trs. Interestingly enough DOL makes 400mil npat versus 15 mil of trs. That is 13% npat margin vs 2% of trs.
However trs does not carry any debt and the equity is 150 mil. Dollarama on the other side has 1.5 bil debt and negative equity. Remove 750mil goodwill and DOL has -800 ve equity. That is quite scary IMO.

The trick for trs is to increase npat margin to 5% at least. One would think that with all the current initiatives that should be doable. Wondering if trs can copy some of the DOL model to a certain extent. If revenue stays at 809 mil then 4-5% npat margin would come to 40mil npat. Should be achievable in 3 years time especially that operating cash flow is already there. I hope there are good times ahead of trs and some of the cash from the optimisation can be realised soon.