Australia’s retailers are heading into Black Friday and Christmas on the back foot. On Thursday 29 October, Wesfarmers, JB Hi-Fi and Super Retail Group all told shareholders that sales growth had slowed, a day after inflation figures pushed the odds of a Melbourne Cup Day rate rise higher.

Wesfarmers: Bunnings feels the pinch

At Wesfarmers’ annual meeting, managing director Rob Scott said Bunnings’ year-to-date sales growth “has moderated since the second half of the 2026 financial year.” He said that despite a stronger start to the quarter, “lower sales across seasonal categories and the commercial segment in recent weeks has weighed on overall sales performance.”

Kmart’s and Officeworks’ sales growth was broadly in line with the second half of last financial year. Mr Scott noted that the Reserve Bank had lifted the cash rate for the fourth time this year, to its highest level since 2011, and said “elevated inflation and higher interest rates continue to impact demand in parts of the Australian economy.”

JB Hi-Fi: October slows

JB Hi-Fi said comparable sales at its Australian stores fell 1.4% in the September quarter, while total sales were down 0.4%. The Good Guys’ comparable sales fell 0.4% and its e&s business 4.5%, while New Zealand grew comparable sales 10.7%.

The company said customers remained “focused on value and increasingly shopping during promotional events,” and that “in October, the Group has seen sales slow ahead of the important Black Friday and Christmas trading periods.”

Super Retail: fuel hits BCF

Super Retail Group reported group like-for-like sales growth of just 0.2% for the first quarter and total sales growth of 2.0%. Supercheap Auto grew like-for-like sales 2.5% and rebel 0.3%, but BCF fell 1.1% and Macpac 11.7%. The company said “higher fuel prices weighed particularly on BCF,” while promotional timing and a milder winter hurt Macpac. Year-to-date earnings were in line with management’s expectations.

The market reaction

The consumer discretionary sector fell 2.0% on Thursday, according to Market Index, even as the broader ASX 200 rose 0.5%. Wesfarmers dropped 4.0%, JB Hi-Fi 2.9% and Super Retail 2.8%.

“Consumer discretionary was the weak spot, now close to 10 per cent lower year-to-date as higher interest rates weigh on household spending,” Global X ETFs strategy analyst Joseph Marassa told AAP.

What it means

For landlords, suppliers and lenders to the retail sector, the updates suggest a cautious peak season, with shoppers waiting for discounts and spending less on seasonal and big-ticket items. Retailers with strong value credentials and tight cost control are best placed, but margins will be tested if promotions have to work harder to bring customers in.

Sources: Wesfarmers, JB Hi-Fi and Super Retail Group ASX announcements (29 October 2026); Market Index; AAP.