The Reject Shop names new chief
Recommendation
The Reject Shop has appointed Ross Sudano as its new chief executive following the departure of Chris Bryce last month. Sudano was previously the chief executive of beverage and hospitality company Little World Beverages, a pioneer of the Australian craft beer movement, and has held management roles with several retailers including Anaconda Adventure Stores, Foodland Associated and Coles.
Before becoming chief executive of Little World, Sudano was the company’s chief operating officer and delivered impressive performance during his three year tenure – a 70% increase in revenue and net profit up more than 160%. He subsequently oversaw the sale of Little World to Japanese company Lion, formerly Lion Nathan, which is encouraging as we think The Reject Shop could be ripe for a private equity takeover.
Chairman Bill Stevens said Sudano 'is a proven leader with an impressive track record for achieving strong revenue and profit growth in the retail sector and a reputation for bringing deep insights into the needs and demands of consumers. His focus on driving high performance in a low-cost environment is a great fit with The Reject Shop.'
We look forward to hearing more from Sudano himself, and especially whether he'll continue The Reject Shop's store expansion, when the company reports its full-year result next month. The Reject Shop’s share price is up 7% since Super Retail Group vs. The Reject Shop from 1 Jul 14 (Buy – $8.88) and we continue to recommend you BUY.
Note: The model Growth Portfolio owns shares in The Reject Shop.