Agree, scale and margins are different for Dollarama, but the...

Agree, scale and margins are different for Dollarama, but the comparisons are worth further discussion:
- Dollarama trades at over 24x EBITDA, compared with TRS at less than 4x EBITDA
- The higher multiples for Dollarama have grown as their margins have grown, which shows what could happen if TRS can do the same (i.e. you get the double benefit of higher earnings and a higher multiple);
- Dollarama also has large lease liabilities in addition to significant on balance sheet debt, although discount variety property dynamics are different in US/Canada (less exposure to major shopping centres/high lease costs). Accordingly, TRS margins are unlikely to ever get to Dollarama levels, but there is meaningful margin upside available from current levels

A few other comments:
- Energy costs are a growing issue for all retailers, and TRS quietly announced last year that it had rolled out low cost LED lighting to all its stores. This is not a game changing issue, but it shows that mgt has been proactively pursuing cost reductions in a range of areas;
- The impact of the new DC is yet to be reflected in the results, but all comments so far suggest it is on track which is a great achievement given these initiatives typically have significant teething problems.

Australian retailing does however remain tough with low wage growth and low inflation, so we will have to wait for the H1 results to see what's really going on.