Nearest the Pin, page-113

Crazy, where can you see when hedging contracts expire and what the amounts are (I havent trawled through the financials as yet). This is actually and important factor for all importers. Most hedging is done <12 months and the high over the last year has been 81c. So I don't think coming out of these hedging contracts will do too much damage but if there are longer dated ones then is could result in lower margins unless its past onto the cost of the goods. In general, I think inflationary effects in Australia will start to bite once importers run out of the hedging contracts and can't sustain the lower margins. Competition is causing some companies to absorb this higher cost within their current margins but sooner or later it will be passed onto consumers. Unless TRS hedging is markidly different to Kmart/BigW then I don't think it will really matter. In a period of economic instability and stagnent wages, I believe more people will decide to shop as the more discounted retailers. So I think overall demand for shopping at TRS will increase.