H&M, Zara and Shein battle it out on the global fast fashion stage along with a bunch of other apparel brands everyday. Zara (Inditex) has been cranking it out of the park for years with operating margins, excluding Covid, around 17%. Management does not rest on their laurels. They are testing out new store concepts, tagless RFID, changed shipping policy, etc.
Competitors have to keep up with Zara which takes its toll. Last week the CEO of H&M quit due to the stress. Sales were not growing as expected and profits were down. They were late changing their shipping return policy compared to Zara.
Meanwhile Reitman's management has known for a long time that H&M and Zara don't compete in Plus Sized Fashion so on September 22nd 2022 they announced
“With New Energy and Excitement in Plus-Size Fashion, The Canadian Retailer is Leading the Way”
"The comprehensive PENN. refresh includes store renovations, new stores, enhanced customer service, new and refined product programs, expansion and changes to e-commerce and, as mentioned, new branding and marketing."
"As part of a dynamic three-year plan, the company will add ten new stores in key markets with an emphasis on growing its presence in Ontario and Quebec."
At the time there were 90 PENN stores. There are still 90 PENN stores. Many have not been renovated.
Not one Reitmans banner (PENN, RW, Reitmans) has changed their shipping return policy.
Its important to think about past results in terms of past management. Just changing the shipping return policy will have many immediate benefits. I am sure there are many other things new management will change that will make Reitmans more profitable and grow sales.