The Reject Shop's comparable sales have risen in the first three months of the new financial year in further signs the business is turning around.
The discount variety retailer has made changes to its product range, including increasing staples such as toiletries, confectionery and pet products, as part of its turnaround strategy following three years in a row of profit declines.
Managing director Ross Sudano, who took on the role just over a year ago, says the building blocks of the strategy were beginning to deliver results.
"We are by no means there yet, we are on a journey which will take some time, however the business has continued to improve quarter by quarter and I am confident we are on the right track," he told the company's annual general meeting on Wednesday.
He said comparable sales for the first three months of 2015/16 were well above the same time a year ago, however he did not reveal a figure.
Same store sales rose 2.3 per cent in the six months to June 30, compared to a 3.3 per cent decline in the first half of the 2014/15 year.
Mr Sudano said the ongoing positive sales momentum has been achieved despite a challenging retail environment.
"Real disposable incomes continue to remain flat with ongoing uncertainty around employment prospects impacting on consumer sentiment," he said.
"Retail continues to be patchy, with specific areas performing well; specifically, retail focused on home improvement or redecoration has and continues to perform well both in the general retail market and in our stores."
The Reject Shop has opened three new stores, relocated three existing stores and refurbished 20 stores in the first 13 weeks of 2015/16.
A further five openings are planned for the rest of the financial year.
The Reject Shop's net profit was down 1.9 per cent to $14.2 million in 2014/15.
The company has previously forecast to return to full year profit growth this financial year.
Share
