Most ASX retail shares have had a rough time of it on the markets over the past year or so, thanks in large part to fears over a potential hard landing for the Australian economy.
As we would all be aware, the Reserve Bank of Australia (RBA) has been ratcheting up interest rates rather aggressively since mid-2022 in an attempt to tame surging inflation. In the past, efforts to do this have resulted in a recession, or a 'hard landing'. The RBA doesn't want that to happen in 2024. And with inflation falling amid resilient economic growth, many investors are hopeful that the central bank can indeed pull off an elusive soft landing instead.
However, I think shareholders of the highest-quality ASX retail stocks don't need to worry too much. The best companies, even discretionary retailers, can profit during both good times and bad. As such, no soft landing would be required for a successful investment today. Here are three ASX retail shares that, in my view, fall under this definition.
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3 ASX retail shares primed to succeed in all economic weather
Super Retail Group Ltd (ASX: SUL)
You may not have heard of Super Retail Group. But chances are you've visited at least one of its stores, whether that be Rebel, Super Cheap Auto, MacPac or BCF.
Super Retail's businesses are famously resistant to economic downturns. Australians just don't seem to stop buying camping, fishing and motoring supplies. That was evident in the company's trading update that we got a look at just this morning. As we covered at the time, this update revealed that Super Retail was able to bring in a record $2.02 billion in unaudited revenue for the six months to 31 December 2023.
This update has resulted in Super Retail shares hitting a new all-time high of $16.99 today.
JB Hi-Fi Limited (ASX: JBH)
Next up is JB Hi-Fi. I've long been impressed with JB Hi-Fi and its ability to move with changing consumer preferences over the years. Although you'd think that this is predominantly an audio retailer, JB has pivoted towards appliances and electronics in recent times.
This company has also proved to be remarkably resilient to economic adversity. In an update late last year, JB informed investors that total sales over the first quarter of FY2024 were up 40.5% compared to where they were in pre-COVID FY2019. This gives me enormous confidence in this retail share's agility and future prospects.
Premier Investments Limited (ASX: PMV)
Finally, it's time to discuss retailing conglomerate Premier Investments. Like Super Retail Group, Premier is a little-known name behind its far more well-known brands. These include Peter Alexander, Smiggle, Just Jeans, Dotti and Jay Jays.
Chances are you saw at least some merchandise from one of these stores under the family Christmas tree last year. Premier is run by the famously wily Solomon Lew. Lew has managed to guide Premier to success after success over the years. Given this company's portfolio of successful yet diversified brands, it's one that I think is poised to continue to prosper, regardless of what might happen in the broader economy.
This is also evident in the company's numbers. Despite the cost of living crunch over FY2023, Premier was able to deliver a near-10% rise in sales over the year, as well as a 6.4% rise in net profits and a record full-year dividend.
