UplistingThere are so many reasons why I would pay a much higher multiple for Reitmans compared to Roots given where we are in the economic cycle.
An uplisting to TSX would result in PE expansion as Reitmans has a pristine balance sheet and their target market is financially in great shape.
While companies like Roots are saddled with debt their management will naturally focus on it. This means there is a subtle shift going on with regards to ecommerce. Did you catch it? From what I can tell Roots is not paying return shipping. If it becomes an industry norm not to pay return shipping the apparel industry as a whole becomes a better investment.