Long Time Investment, page-59

I think Telstra are seeing the writing on the wall for high margins. Cost is being slashed out of Telstra and with so much of retail outsourced to Vita they see their profit as unnecessary cost. Vita are good retailers and are looking to diversify. Clothing is high margin and low cost to setup. I see this foray into clothing as a way of diversifying if Telstra get tough. I am sure Telstra will always keep Vita profitable. But telstra hold they keys and its questionable if the profitability levels can be maintained