Reject Shop to open 11 stores before Xmas

17 Oct 2012, 5:39 pm   -   Source: AAP

The Reject Shop is continuing its store expansion after finally putting its troubles caused by the Queensland floods behind tehm.

The Reject Shop will continue to roll out its expansion program, after two years of reduced profits because of the Queensland floods.

The 2011/12 financial year was challenging due to tough trading conditions and the continued recovery from the Queensland floods almost two years ago, chairman Bill Stevens told the company's annual general meeting.

Mr Stevens said the Reject Shop had now finalised its insurance claim from the floods and was continuing to roll out its planned expansion of stores.

"To recover insurance in this area, it is necessary to prove that we had in fact lost profits, notwithstanding that a number of other retailers were struggling in a tough environment," he said.

"As a result, the management group and our team members worked tirelessly to recover the lost ground, while continuing to rebuild from the flood and continue with the planned expansion of our store portfolio."

Managing director Chris Bryce said the retailer had opened six stores so far this half and planned to open another 11 before Christmas.

There were also plans to open six more stores in the second half of fiscal 2013 but there was a possibility that two stores would need to close due to shopping centre redevelopments.

Mr Bryce would not provide profit guidance for the coming year but said the company was trading well during its first half.

"We have had a pleasing start to the year, with positive comparable sales for the year to date," he said.

"While consumer sentiment and general trading conditions remain challenging, our aim is to continue to progressively build on our existing stores' sales base over the course of the year."

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