Welcome, everybody, to The Reject Shop's end-of-year results announcement. [inaudible]. The presentation will open a call for questions, check your questions, and press star on your telephone keypad. Thank you again for joining us today. I'll hand over to our first speaker, Andre Reich. Thanks very much, Josh. Good morning, everyone. I'm Andre Reich, The Reject Shop CEO. It's my pleasure to welcome you to our 2021 full-year results conference call. Joining me on the call is Clinton Cahn, our CFO, who'll start by presenting our FY 2021 results. I'll then provide an update on the progress we've made during the year and set out our key focuses for FY 2022. Over to you, Clinton. Thanks, Andre, and good morning, everyone. I'll start by walking you through the group's FY 2021 results, which are summarized on slides three and four. We have again presented our financial results in both the pre and post AASB 16 basis, which will assist you in comparing the result with historical performance. Some key highlights from our results include sales of AUD 778.7 million with comparable store sales down 5%. On a pre- AASB 16 basis, the cost of doing business margin of 37.3%, which represents an improvement of 84 basis points or AUD 22.5 million year- on- year. EBIT of AUD 9.4 million, up 110%. Net profit after tax of AUD 6.4 million, up 134%. On a statutory or post AASB 16 basis, EBIT of AUD 18.6 million up 99%, and net profit after tax of AUD 8.3 million up 643%. We are pleased to have again finished the year with a strong balance sheet. On the June 27th, 2021, we had cash of AUD 73 million and no drawn debt. In terms of dividends, the board has decided that no final dividend will be declared in FY 2021. Management and the board will continue to assess its capital management strategy and will provide an update at our half year results in February next year. Finally, and as previously stated, the company has not received any JobKeeper wage subsidies. Turning to slide five now. Comparable store sales were down 5% on the prior period and were down 2.1% on FY 2019. We're using FY 2019 to enable a comparison of sales with pre-COVID-19 trading conditions. Given the second half of FY 2020, the prior period, included the benefit from COVID-19 related panic buying. Sales were impacted, in some instances, unfavorably and in others favorably, by various state government restrictions relating to COVID-19. This included multiple lockdowns in each of New South Wales, Victoria, Queensland, W.A. and South Australia, as well as changing state border and travel restrictions. A number of these lockdowns are in place today, including in New South Wales, Victoria, and the ACT. Stores in large shopping centers and CBD locations have seen a significant reduction in footfall. During the year, comparable store sales in large shopping centers and CBD locations were down 12.5% on FY 2019. Comparable store transactions, which for us is a proxy for customer numbers, were down approximately 19% on FY 2019. While there is an opportunity for sales at these stores to return to historical levels as more Australians become fully vaccinated, we have been focused on around 30 of these large shopping centers and CBD leases, which expire within the next 18 months or are currently being renegotiated or have recently been renegotiated on more favorable terms. If acceptable commercial terms cannot be agreed with landlords to reflect the change in customer traffic at these locations, we intend to close these stores and replace them with stores in more attractive neighborhoods and strip locations. The remainder of our portfolio saw flat comparable store sales growth compared to FY 2019, and in this was included our metro and country stores in neighborhood and strip locations, which represent around 50% of our overall store portfolio. This cohort of stores generated comparable store sales growth of 3.4% on FY 2019, and on average, are our most profitable stores. These stores are the key focus of the company's future growth strategy. It's also worth mentioning that during the year, we opened 10 new stores, seven of which opened in the fourth quarter and closed three stores, including our Melbourne CBD store. Moving on to gross profit, which was AUD 313.5 million on a pre-AASB 16 basis, with gross margin percentage down by around 66 basis points on the prior period to 40.3%. During the year, the company incurred approximately AUD 9 million or 115 basis points of gross margin in higher than anticipated and unbudgeted international ship supply chain costs as a result of international shipping rates being significantly higher than historical levels. Unlike in FY 2021, these higher international supply chain costs have been factored into our budget for FY 2022. However, they continue to increase each month. If we were to exclude these additional international shipping costs, the gross margin would have been 41.4%, which is approximately 50 basis points higher than the prior period. Turning to slide six. Pre- AASB 16 EBIT was AUD 9.4 million, up 110% on the prior period and within the guidance provided to the market on June 4th of AUD 8 million-AUD 10 million. EBIT growth was mainly driven by a reduction in the cost of doing business, which improved by approximately AUD 22.5 million compared to the prior period. In FY 2022, we plan to invest approximately AUD 5 millions of these savings to improve technology and systems across the business, as well as prepare for growth. The reduction in the cost of doing business during the year comprises a saving of AUD 8.8 million in admin expenses or head office costs, and a saving of AUD 13.7 million in store expenses. The simplification and standardization of in-store processes during the year were the main drivers of store labor reducing to 13.9% of sales. This compares to 14.5% in the prior period and above 15% the year before, and is below our stated target of 14%, which is pleasing given sales were lower than the prior period. Store occupancy costs increased to 14.7% of sales, which compares to approximately 14% in the prior period and is in line with our stated target of 14.5%-15%. Again, noting lower sales. In FY 2021, rent savings were achieved through the renegotiation of 80 leases that were either in holdover or expired during the year. There is an opportunity to achieve further rent savings with approximately 140 leases expected to be renegotiated during FY 2022. Other store costs and marketing spend were well-controlled and were lower than the prior period. I also note that store expenses include the operating costs associated with opening and closing stores. These costs totaled approximately AUD 2 million in FY 2021, up from AUD 1.5 million in the prior period, and include a provision for stores expected to close during FY 2022. Depreciation reduced by approximately AUD 4.8 million compared to the prior period, mainly due to a number of non-store assets being fully written down. Turning to slide seven. The company's balance sheet remains strong with a cash balance of AUD 73 million and no drawn debt during the year. This compares to a net cash position of AUD 92.5 million 12 months ago and AUD 6.8 million 24 months ago. The reduction in cash is primarily due to higher inventory, which closed at approximately AUD 100 million, an increase of AUD 29 million since the end of June 2020. Inventory levels are expected to continue to remain elevated as we head towards Christmas, as well as to mitigate against potential further global supply chain disruptions and international shipping delays. Stock turn improved from 4.8x to 5.1x over the past 12 months. Rationalization of the number of different types of products within the range continues. We were compliant with all our banking covenants on June 30, 2021. Our existing debt facilities are in place until August 2022. On to slide eight. COVID-19 continues to impact sales performance, with July and August sales adversely impacted by lockdowns in New South Wales, Victoria, Queensland, W.A., South Australia, and now the A.C.T. Stores in large shopping centers and CBD locations continue to be negatively impacted by reduced footfall. The ongoing challenges in the international supply chain are expected to result in shipping costs remaining elevated during FY 2022. Our focus in FY 2022 will be on generating comparable store sales growth in our existing network, subject to the ongoing disruption from COVID-19, also opening new stores in neighborhood and strip locations, both metro and country, and continuing to optimize costs across the business. We'll also focus on managing gross profit margin, given the headwinds in the global supply chain, the cost of which is expected to be partially offset by improved foreign exchange rates. In the first two months of FY 2022, one new store was opened in Bendigo in country Victoria, and one underperforming store was closed, taking the national store footprint to 361 stores, up from 354 stores at the end of June 2020. We are targeting to open a further 20 stores during FY 2022, with a further 10 expected to open during the first half. In addition, we expect to close at least five unprofitable or underperforming stores during FY 2022. Given the operating environment remains uncertain, we've determined not to provide specific guidance for FY 2022. This takes us to slide nine, where I'd like to share with you our key takeaways from the full-year results. Sales were challenged during FY 2021, with customer behavior disrupted by rolling and extended COVID lockdowns, adversely impacting customer traffic at large shopping centers and CBD stores. This year's gross profit included approximately AUD 9 million or 115 basis points of gross margin in higher than anticipated and unbudgeted international shipping costs, which are expected to remain elevated during FY 2022. We reduced the cost of doing business by AUD 22.5 million during the year and plan to reinvest AUD 5 million of these savings this year to improve our technology and systems, as well as prepare for growth. Our balance sheet remains strong, with AUD 73 million in cash and no drawn debt. Finally, the operating environment remains uncertain, particularly in relation to COVID-19 and challenges in the international supply chain. I'll now pass back to Andre to talk about the strategic and operational progress we made during the year, as well as our key areas of focus for FY 2022. Great. Thanks, Clinton. Turning to slide 10 now, which is consistent with last year's results presentation. This sets out the phase III of our turnaround strategy: fix, reset, and then grow. Our objective in FY 2021 was to progress through the fix phase of the business turnaround while improving profitability through cost reductions. This objective was achieved through further business simplification operation efficiencies, which Clinton Cahn's touched on, which saw the cost of doing business reduced by approximately AUD 23 million. This is a significant achievement, and it exceeded our stated targets for FY 2021. The Reject Shop turnaround is progressing as expected, despite the operating uncertainty and challenging macro environment. COVID-19 lockdowns continue to have incurred in every state in which we operate, having a significant impact on our customers' shopping behavior. International shipping rates have grown significantly over the past year and appear to be remaining elevated during FY 2022. Our stores in large shopping centers and CBD locations have seen transactions drop by almost 20% compared to FY 2019, with some rents as high as 35% of sales, which is simply not sustainable for our business. We have no choice but to close stores that are unprofitable or where rents do not reflect the change in customer traffic. In light of these challenges, there's more to do to fix the business, but we are also excited to begin transitioning to the reset phase of our turnaround in FY 2022 and prepare for growth. I'm proud of how much our teams have achieved in the initial stages of the turnaround, and in the upcoming slides, I'll outline the progress made during FY 2021, as well as our key focus areas for FY 2022. Now we'll turn to slide 11. During the year, our team has delivered a number of key achievements. Most importantly, we implemented COVID-19 safe ways of working across all stores to ensure our team members were safe and the environment was clean and safe for our customers. As I mentioned, we reduced the cost of doing business by almost AUD 23 million during the year through the standardization and simplification of ways of working across our stores and our head office. We've been working to reset the merchandise range, which is a long lead time exercise that has been made more difficult with our teams unable to travel overseas during COVID. This has required us to find new ways to source innovative and exciting products, which is the DNA of our discount variety store business. We remain strong in seasonal events, especially Christmas and Easter, and are pleased with the progress made in grocery, cleaning, pet, and garden, all of which have performed well through COVID-19 and have benefited from new strategic partnerships built with national brands. The general merchandise range, including homewares, was in fix during the year, and our new and improved product range is coming into stores now for spring. We're also pleased with the improved toy range, which has delivered strong results, especially during school holidays. Consistent with our commitment to help all Australians save money every day, we established permanent ends, which showcase our cheapest everyday essentials, which means when you walk into any of our stores nationally, you should quickly and easily be able to find Australia's cheapest pasta, Pepsi, soda water, Morning Fresh snacks, and pet food. We have prioritized creating more meaningful work for our teams and promoting from within. We're proud to say that approximately 60% of our new store managers appointed since April 2020 have been promoted from within. We continue to move towards one-touch merchandising through shelf-ready and floor-ready product flow, with more product in shelf-ready trays, making it easier for our teams to execute. We're working to enhance our customers' in-store shopping experience with reduced inventory levels, resulting in cleaner stores and simpler store navigation. We've installed new fixtures in our drive aisles at all stores, which makes it easier for our teams to merchandise the event zone and removes the need to rearrange the store to support major events such as Christmas. As Clinton mentioned, opened 10 new stores during FY 2021, most of which were either in neighborhood or strip locations in metro and country areas. I was proud of our team for successfully opening five new stores in five weeks across April and May this year, which is testing our future growth strategy. Finally, we launched our new website, partnered with DoorDash to deliver products to customers within 45 minutes from around 255 The Reject Shop stores across the country. I'm proud of how much our team has achieved and how well they've responded to the significant changes and challenges that have occurred within our business and the trading environment during the year. Now turning to slide 12. While significant progress has been made during FY 2021, there's still lots to do. COVID-19 will continue to be a challenge for our business until more of the community is fully vaccinated, and we continue to focus on ensuring that The Reject Shop remains a safe place to shop for our customers and a safe place to work for our teams until that time. Our team is focused on searching for new stores, predominantly in neighborhood and strip locations in both metro and country areas, where we can more conveniently serve more Australians. We've already identified a number of new store opportunities, but during the reset phase, our focus is on building a pipeline of new stores to replace the store closures, securing opportunistic sites when they become available, and readying for growth in FY 2023. In FY 2022, we're targeting to open another further 20 stores and expect to close at least five unprofitable or underperforming stores. The team will also be renegotiating approximately 140 leases that are either in holdover or expiring during FY 2022, which represents an opportunity for us to achieve further rent savings. As Clinton mentioned, we plan to invest around AUD 5 million in FY 2022 to improve systems and technology, as well as prepare for growth. This includes upgrading our replenishment system, which will allow us to increase the number of products we have on replenishment, and in turn, improve availability in store and availability of products for our customers. We will continue to grow online sales in partnership with DoorDash, as well as explore other options for online growth. Inflationary pressures, such as escalating international shipping costs and increasing raw materials, are a challenge that all retailers will need to manage through FY 2022. This will be a challenge for our low-margin business in the short term, but we're working hard to maintain our value proposition. This means absorbing as many of these costs as possible while selectively reviewing prices to maintain margins. We'll continue to improve the taste level of our general merchandise product, in particular our home range, and continue to liven up the drive aisle with more frequent events, as well as more specialized and more novelty products. We're investing in common shelving for all stores, which will support shifting even more product to shelf-ready packaging. This will improve team member and customer safety in-store and make our teams more efficient through enhanced one-touch merchandising. We're in the process of introducing new and enhanced customer messaging in-store and signage that shouts out our low prices and great value products. Finally, we've implemented stores of trial in each state where we test new ways of working, new technology, and other innovation before rolling it out to the broader national network. This in addition to our stores of learning in each state, where we give our teams the opportunity to learn from our best-performing store managers. In conclusion, and as I've said before, we believe the discount variety sector represents a significant opportunity for growth in the medium to long term. As Australia's largest discount variety retailer with our strong balance sheet, The Reject Shop is well-positioned to capture this opportunity. While we continue to fix elements of the business during FY 2022, we look forward to transitioning into reset and beginning to prepare for growth via store network expansion and online growth. I'm hopeful that customer shopping behavior will return to normal, as broader concerns around COVID-19 reduce and more of the community gets fully vaccinated. Until that time, our team will continue to navigate the short-term challenges associated with COVID-19, refine our merchandise offer, and remain focused on cost optimization. I'd like to now acknowledge the hard work and dedication demonstrated by our more than 4,000 committed and passionate team members in our stores, distribution centers, and store support center who work hard every day to deliver value for our customers and shareholders. Thank you to all of our team members across the country. To you, our shareholders, thank you for your patience the long-term commitment to our business. We're determined to transform The Reject Shop and deliver sustainable growth for the long term. That's the end of our presentation. Hand back to Josh, to open up for questions. Thank you and welcome to the Q&A session. To ask the question please press star one on your telephone keypad, wait your turn to be announced. The first question comes from Anna Guan from Goldman Sachs. Please go ahead. Morning, gents. Just checking you guys can hear me okay. We can. Morning, Anna. Excellent. A couple of questions from me, if I can. The first one is on July, August trading, and obviously, appreciate there are a lot of moving parts at the moment with the lockdowns. Is there any sort of further color you guys can share at the moment in terms of disruptions, or the quantum of disruptions you guys have experienced so far across the various states, please? Anna, consistent with the half-year result, we haven't provided a trading update. The little bit of color we can give, which I think you know, is that we've experienced a number of lockdowns through July and August. Started with WA, we had Queensland, we've had Queensland twice. New South Wales has endured through July and August, Victoria twice, South Australia, and the ACT. No two lockdowns are alike. For example, Victorians are quite used to us being open during lockdowns. We're open, and we tend to trade okay in Victoria. Whereas a short lockdown, whether it's three, five, or seven days in, say, ACT, South Australia, Queensland, those lockdowns, we tend to see panic buying the day before the lockdown, and then quite a big drop in sales week on week. In the initial days of the lockdown, it started to get a bit better towards the end, and then once the lockdown ends, we tend to see a normalization in trade. I'm conscious that doesn't help very much. In New South Wales, that lockdown's kind of been evolving as restrictions evolve. We're open across New South Wales, which is really pleasing, being an essential retailer. I think just on New South Wales, greater Sydney, we tend to see a similar trend as we've seen in Victoria, and then the regions there's been a bit more caution around customers getting out. It really does depend. I hope that helps a bit, Anna. Yeah. Okay. No, that's super helpful. My second question is on cost. If I can sort of break up my question for two parts. One is shipping costs. Obviously, you guys flagged about a AUD 9 million impact in FY 2021. At this stage, based on your observation on rates, should we expect that to annualize into FY 2022? That's the first part of my question. Second part is around, Andre, you mentioned supplier cost increases earlier. Based on the early indications from your conversations with your suppliers, is there any sort of quantum you guys can sort of share with us on that front, please? Anna, why don't I talk about gross profit margin more broadly? That'll hopefully answer your question. Sounds good. Our gross profit margin of 40.3%, when you exclude that AUD 9 million, was about 41.4%. We'd guided last August to 41%-42%. Had the shipping cost not occurred, I think we'd be pleased with the gross profit margin outcome. In February, we talked about gross profit margin being 40%-41%. We've come in that range. I think the uncertainty around shipping kind of demonstrates that while we can provide a range, 12 months is a long time in international shipping at the moment. I guess probably the key point I'll make is there's budgeted versus unbudgeted. If we go back 12 months ago, the AUD 9 million was totally unexpected and unbudgeted, and which made it really hard for us to respond to that additional cost, particularly when there was a view across the market that higher shipping costs might be transitory, that they might end by Christmas. People were talking about the Chinese New Year. They were talking about around June, July this year. The difference this year on last year is that we are aware of where shipping costs are at, we have budgeted for them, which allows us, as Andre said, to look at absorbing those costs into price. That's shipping costs, that's raw material cost. Those are two headwinds. Then we also have a bit of a tailwind in FX. You may recall that we were hedged at about AUD 0.66 in FY 2021 on average. We're currently hedged out to February at about AUD 0.74. There is a bit of a tailwind there, but we expect that to only partially offset the higher costs associated with shipping and raw material costs. We can't give you specific guidance on what those costs will be this year. We do expect them to increase, and we are seeing shipping costs increase month-to-month. It's something that we're monitoring really closely, and it's now business as usual, so we're responding as quickly as we can. Yeah. Anna, just to build on what Clinton said. Thinking about how we execute that practically with 7,000 SKUs. A lot of those 7,000 SKUs have changed or evolved over the last 12 months. That's an opportunity for us in a planned way to look at how we change our product mix, how we elevate some of the products to absorb the shipping rates, and how we actually pack containers to bring the product into the country more efficiently. Multiple techniques and scenarios that we've been running to ensure that we stay on track with our strategy, offering customers low prices across all products we sell, but also accommodate those cost headwinds. Yes, that's super helpful. All right, our last question is on inventory. Obviously, you guys had a bit of inventory build in this half, and part of the reason you guys flagged is the supply challenges. I was just wondering if you guys can sort of give us some color, in terms of how much of that inventory build you sort of related to that, and also going into the peak Christmas selling period, how do you guys think about, I suppose, inventory internally? How do you guys position yourself on that front, please? Everyone across the world face disruption in supply chain, whether it's raw materials getting to factories or factories getting their goods out. We felt this earlier. I'm pleased that we are running at high levels. In normal circumstances, we wouldn't be running at this level. It's prudent just at the moment with the delays that we've got a bit of buffer in the business, which is good, and it also helps when each state goes into different lockdowns. As Clinton said, some states perform well above expectations and some well below. We've got to have that excess inventory in the business just at the moment. In terms of its health, inventory health is still strong, and it's as good as it's been over the last 18 months. We continue to take a prudent approach to markdowns on slow sellers. We've got a handle on it. As soon as the international shipping challenges normalize, then we'll bring that inventory back in line. Terrific. Thanks very much, guys. Thank you, Anna. The next question comes from Keegan Booysen from Jarden. Please go ahead. Good morning, team. First one from me. The cost side effort was fantastic. You talked about AUD 5 million of the AUD 22.5 being reinvested. If we think about that remaining AUD 17.5, how much of that cost would be variable, as in how much can we expect to come back into the business as we see sales starting to normalize after COVID-19? Morning, Keegan. It's a great question. I think if we split the cost of doing business into labor, rent, other store expenses, and admin costs. Labor costs, I think we're really pleased with where we're up to. Labor costs were AUD 108 million in FY 2021, which is down AUD 14 million on two years prior and down AUD 11 million on the year before. We're gonna be really focused on FY 2022 in controlling that cost. Fair Work Commission minimum wage increase of 2.5% kicks in in September. That affects all our team members, excluding our store managers and assistant store managers. That's a headwind. We're confident in our ability to offset that cost. There's rent. Rent went up in AUD terms by about AUD 1 million, which is a pretty amazing effort given we've got 360 stores in our portfolio, most of which increase each year at 3%-4%. That's reflective of 80 renewals through the year where we achieved quite meaningful cost savings. We've got 140 renewals coming through this year, so we're expecting to try and hold that number to control that number. Most of the portfolio will be increasing year-over-year. We'll get the full- year benefit of some of the savings we got last year, and then the part-year benefit of the savings we'll achieve this year. Labor is focused on controlling that. Rent, really focused on controlling that. Other store costs, which are store operating costs, marketing, and a few other costs, we think we can control through the year. Probably one variable there will be opening costs. As we open more stores, it costs approximately AUD 50,000-AUD 55,000 per store in operating costs to open those stores, and we'll continue to call those out separately so you can see them. We've provided for store closures, so that shouldn't have too much of an impact next year. That store expense line should be well controlled into the year. The admin line, where we saved AUD 8.8 million in FY 2021. That line is where we'll see some of that reinvestment, and that's also where we have bulked up some of our resourcing. For example, we built a property team and a store development team to support growth. We will see an increase in that line. Store expense is expected to be well controlled through the year. That's fantastic. Thanks. Second one, look, I appreciate you're still working on the current store format, but it seems like there's actually been a lot of progress being made there. Can you talk to us how some of the new regional stores have performed? You've put down quite a few over the last quarter, and whether there's still any sort of structural changes to the format that need to be done. Thanks, Keegan. The store format we're pretty happy with. There'll always be improvements as product ranges change and we learn more about what our customers like and dislike. So far, that cookie-cutter model approach that we've talked about from day one, we're pretty happy with that. It'll evolve and get better as we learn more about that model. We're pretty set on what that is. The store layouts really are focused on efficiency for our team members to run those stores in a one-touch way. Partly it's the location, partly it's the size, but it's largely how we set them up to allow customers to shop easily and our team members to operate efficiently. They're pretty good so far. Clearly, country locations and suburban locations are our growth channel, and we'd identified that early, and that's been reinforced with the stores that we've opened. I might, Keegan, just to add to that, just to give you some numbers. Sure. We've got 48 large shopping centers and CBD locations that were down 12.5% on FY 2019 in terms of sales. The average rent-to-sales for those stores is about 23%, and there's seven of those 48 where we've got rent-to-sales above 30%. The store contribution of that cohort of stores is about 5%, which is not where we want to be at all. Pleasingly, there's about 31 stores in the next 18 months that are up for renewal where we can improve the economics there or close the stores. I guess to your question, there's a cohort of stores which is approximately 50% of our stores. Neighborhood and strip stores that Andre was talking about, they were up 3.4% on FY 2019. Their rent-to-sales on average is around 10.5%, which is exactly where we want to be, and the new stores we're opening are in around that rent-to-sales range. Their store contribution is closer to 14%-15%. That for us is the model and that's what we're focused on. Fantastic. If I could just squeeze one more in there as well. If you give us a bit of a breakdown in the mix between consumables and discretionary, and maybe just touch on some of the categories that have been performing well. We're seeing a bit of package inflation come through the supermarket chains, and if you're seeing that come through in consumables and what you're thinking around gross margins, particularly in that category as well. Thanks. Yeah. Our business is split largely 50/50. General merchandise 50%, consumables 50%. In terms of a further breakdown, we look at largely between 30% and 40% of the products are sourced locally, which I suppose is a buffer in the sense that of that split, that product's made locally as well. In terms of prices so far, really at the moment it's been based on the increase in international shipping, where we've seen that impact hit us, and local suppliers, and the raw materials. I think I keep going back to that point that it's happening across this market and across the world, and we are working our way through what those cost increase look like and how we evolve our product range to absorb that without having to pass that on to our customers. In some cases where there's no choice, we will, but maintaining our low price strategy is key for The Reject Shop. Great. Thanks, Andre and Keegan. Thank you, Keegan. Just a reminder, if you'd like to ask a question, please press star one on your telephone keypad. The next question comes from Jo Little from Morgans. Please go ahead. Morning, guys. Just, I guess a follow-on question just around inventory and how you think about Christmas and also how you've dealt with the legacy hard homewares product from early this calendar year. Okay. We believe there's growth in Christmas this year, considering customers bought Christmas earlier last year. We believe there's an opportunity there, and Reject Shop's famous for events. If I look back to Christmas and look back to this Easter, they were good periods for us. Confident about Christmas. We've been working with lead times on the Christmas product coming into the country, so we'll watch that very closely. In terms of homewares changes its performance based on each state lockdown. States that go into a harder lockdown, more essential homewares products get sold. States that are out of lockdown, it's the more trend-driven product that performs. Jo, it's sort of mixed across the board. Yeah. If you think about that additional inventory, you've kind of got today, Christmas product coming in, I guess we should be envisaging those higher kind of storage costs et cetera over this half. We're not looking at that at this stage. Yes, we had some demurrage impacts last half, which was the flow of overseas product coming in last minute. We have spent a lot of time in the last six months pulling apart our supply chain and making sure that we've got complete visibility from factory to customer. In terms of elevated inventory costs, our inventory will rise as we go towards Christmas, but not to the historical levels that it's been. Thanks very much, Andre. Just lastly, you talk a lot about this, the store's up for renewal and if you don't get the right rental reductions, you'll close them. Just thinking about the long-term nature of the business, is that still the right call? Are we better not just shutting them down and moving into the more regional locations now? That's the plan. The store opening lead time is between six and nine months. What we've focused on last year is seeing whether or not we could open one store a week, which we proved to ourselves over April and May that the company can do that. In terms of renewal process, identifying new locations, we are progressively doing that. What we don't want to do, though, is close a large profitable store just for the sake of strategic move. We think we can do both, and if a store is unprofitable, yes, we'll close it, even if it is in a country location. I think we can do both to answer your question. If you get the right reductions, you keep the store open, what's the term on the lease you're happy to sign up to? Well, they're typically short-term lease extensions, a year or two years in those larger centers. Okay, great. It really depends, Jo. I think going back six months, we probably thought we'd be closing more large centers than we actually are because there have been opportunities to significantly reduce rent, either, as Andre said, on a 12 to 24-month basis, but sometimes on a longer basis where the reduction is quite material. That gives us the upside to the extent that customer behavior normalizes in the future. Thanks very much. Thank you, Jo. The next question comes from James Bales from Morgan Stanley. Please go ahead, James. Hi, guys. I did like to understand how you think about Christmas. It is such an important trading period for you guys. Last year you indicated that you sold out early. This year you have got the inventory. How much money do you think you left on the table last year in terms of sales that you missed out on because of managing inventory closely? Thanks, James, for that question. We think there's two more week's worth of sales in Christmas products that we left on the table. We've planned accordingly this year. In the overall scheme of things, probably not a material number, but in terms of Christmas for our customers, important. Yeah, got it. Then I also wanted to follow up on one of the comments that you made around special buys and novelty being a bigger part of the mix, and how that gels with the broader thrust towards simplicity and SKU reduction. Yeah. How we've set the store up, James, is a lot more stability in the product on the left and right-hand side of the box. Let's call that the consumable side and the general merchandise side of the store. Down the center is where we know we need to inject more fun and more interest into the business. We're very happy with where we're at with our 365 lines or the products that customers expect to buy week in, week out. We've seen growth in those lines. We're investing in improved replenishment systems to improve availability across all stores. I've seen that benefit through the last 12 months, and we want to go back into bigger events and bigger variety down the center and front of stores to create that interest and that fun that Reject Shop's known for. I think the strategy is in two parts: creating a stable base of products our customers can rely on and trust that they can always get at The Reject Shop, and then layering in now the random fun products in a controlled way that sit in the center of store. The idea is not to create inefficiencies in the business, because largely the store is now consistent and efficient, and it's now to give us the capacity to have some more fun, not only in buying that product, but also selling that product. Got it. Should the 7,000 SKUs that you've got now still trend towards that 5,000-type target you've spoken about before? We've slowed that down a bit, James, just so we can test new products. I'm happy to run with the broader SKU count at the moment as we test and learn this new phase. Yes, optimally, I think in terms of all products fitting in all stores and actually us getting economies of scale, so buying narrow and deeper, that's still our longer-term mission. Great. Thanks, guys. Thank you, James. We have no further questions, so I'll hand it back over to Andre for any additional closing remarks. Thanks very much, Josh. To everyone, a pleasing year we've had, and we will manage our way through the uncertainty of COVID-19 and some of the external impacts, and the turnaround is on track. Thanks very much for listening, and thanks very much for your support. That concludes The Reject Shop's end of year results announcement. Thank you once again for joining us today. You may all disconnect. Call recording is off. Thanks, gents, and thanks, Liza. Thanks very much, Josh. Appreciate it. Appreciate it, Josh. No problem at all. Have a nice day. Bye