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The stock price rises for The Reject Shop as annual sales explode amid the corona virus

The Reject Shop has become one of the few retailers to flourish during the coronavirus pandemic, with stocks rising to $ 8.12.

The budget retailer, which has 351 stores across Australia, saw its shares soar 13.9 percent Monday – and they were valued at $ 1.98 just a year ago.

The dollar store is currently generating approximately $ 900 million in sales annually, and broker Morgan Stanley expects their stock shares to rise from $ 300 million to $ 3 billion in a decade.

The Reject Shop stock rose 13.9 percent on Monday and is now priced at $ 8.12

The Reject Shop stock rose 13.9 percent on Monday and is now priced at $ 8.12

“The range of potential outcomes is wide, others have tried and failed, and the stock’s recent performance has been exceptional – but we still find a risk charge,” said Morgan Stanley The Australian.

The broker recently upgraded the budget store’s stock rating to overweight, as many Australians turned to cheap household items during the pandemic.

“We see a new but experienced management team and a simplified strategy as a potential catalyst to turn market leadership and $ 900 million per year in revenue into higher composite earnings growth from a very low base,” said the broker.

The broker said the retailer has pursued the entire pandemic because of its large market and strong economy.

Procurement and personnel costs are expected to be reduced under the new management of The Reject Shop led by CEO Andre Reich, and rental costs will be reduced.

All of these characteristics are despite strong competition in discount retail from world leaders such as Walmart, Amazon and Costco. We see maturity and profitability in Australia as materially lower, but feel that competition is not the likely reason, ”said Morgan Stanley.

Last year, The Reject Shop’s shares cost just $ 1.98 last year, and were at $ 3.32 in January this year.

Retailing in Australia was hit hard after coronavirus outbreak (pictured, an empty QVB on April 1)

Retailing in Australia was hit hard after coronavirus outbreak (pictured, an empty QVB on April 1)

Retailing in Australia was hit hard after coronavirus outbreak (pictured, an empty QVB on April 1)

Australia's retail industry suffered another blow after it was recently announced that department giant Target would close 167 of its stores (photo, Melbourne store)

Australia's retail industry suffered another blow after it was recently announced that department giant Target would close 167 of its stores (photo, Melbourne store)

Australia’s retail industry suffered another blow after it was recently announced that department giant Target would close 167 of its stores (photo, Melbourne store)

The rise in the stock is good news for retailers, many of whom are experiencing one of their worst years ever during the COVID-19 pandemic.

The pandemic resulted in a sales decline of 17.7 percent in April 2020.

There was a 53.6 percent drop in apparel, shoes, and personal accessories, and a 35.4 percent drop in cafes, restaurants, and takeaways.

Department stores also lost 14.9 percent of today’s sales last year.

On the other hand, online sales doubled from this time last year, accounting for 11 percent of all retail sales for April 2020, compared to just 5.7 percent the previous year.

Throughout the year, a range of retailers had no choice but to close the store.

Target’s parent company, Wesfarmers, announced that 75 stores would close and 92 others would be converted to Kmarts.

Last month, high-end women’s fashion store Tuchuzy went on a voluntary basis.

In late May, British luxury clothing store Jigsaw London announced it would close all of its Australian stores due to COVID-19.

Tuchuzy (pictured), a high-end women's store in the heart of Bondi, will close its doors

Tuchuzy (pictured), a high-end women's store in the heart of Bondi, will close its doors

Tuchuzy (pictured), a high-end women’s store in the heart of Bondi, will close its doors

PAS group, which owns 225 stores in Australia and New Zealand, also went into financial accounting.

Meanwhile, David Jones will close some of his 48 department stores due to a $ 464 million debt following a loss of sales.

Notable names such as Harris Scarfe, Bardot, Roger David and Napoleon Perdis also declined last year as flies with dozens of stores closing, resulting in heavy job losses.

Alex Perry also announced the closing of his bricks and mortar bricks to focus on online sales.

Jeanswest and Colette by Colette Hayman also fell victim to the retail apocalypse.

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