Yes! A large inventory is what you need when people want to...

Yes! A large inventory is what you need when people want to spend money (sorry, I know thats stating the bleeding obvious. But sometimes its best to remind ourselves of the bleeding obvious).

Again, stating the obvious, TRS isnt Kmart or Woolies. It is a specialised retailer. The fact that $2 Dollar shops and Daiso are competitors in the same business area is good IMO ... it shows that people with lots of $$$ (and retail know-how) can see a business opportunity.

The thing with these specialised retailers is that they have a wide customer base. I know plenty of people with big incomes that will say "Yeah, I got that from the Reject Shop" ... "I need such-and-such ... I'll pop into the Reject Shop". We all know what you can get at the Reject Shop ... and there might also be a few things you didnt expect, so you get those, when you're buying a drink bottle. The amount spent on advertising for Reject Shop is minimal .... because everyone knows whats available.

The customer base of course includes the low income groups. They may be poor but they're not stupid. Sure the washing liquid might be low quality ... they know that! ... but its cheap and they can use take account of its lower quality when doing the washing.

A huge inventory is no problem, as long as it keeps turning over. Its a bit like the Aust. Post shops. They might not sell expensive stock, but as long as the cash registers stay active, who cares.