ASX 200 retail sector leads as Aussies start spending again and US keeps tariff at 10%

Consumer discretionary shares led the market sectors amid positive retail and inflation data last week.

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ASX 200 consumer discretionary shares led the market sectors amid official retail data suggesting Aussies are spending again.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) rose 2.56% over the five trading days.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) fell 0.06% to close at 8,662 points on Friday.

On Thursday, the Australian Bureau of Statistics reported a 'retail sales surge' in June.

Seasonally adjusted figures showed a 1.2% lift in national retail turnover last month.

This follows a 0.5% rise in May after a flat April. 

The new retail figures followed better-than-expected inflation data for the June quarter released on Wednesday.

The inflation figures raised expectations of an interest rate cut in August, which would boost consumers' spending power.

On Friday, we learned that Australia had been spared a tariff bump after President Trump released a finalised list of tariffs.

The finalised tariffs will come into effect on Thursday.

Two happy shoppers walking together.

Image source: Getty Images

ASX 200 retail shares led the market last week

Earnings season has now officially begun.

Many top ASX 200 retailers announced when they would reveal their full-year FY25 results last week.

We've included those dates, where available, below.

Shares in the consumer discretionary sector's largest company, Wesfarmers Ltd (ASX: WES), lifted 3.08% to $84.97 last week.

Wesfarmers will release its full-year FY25 results on Thursday, 28 August.

Shares in gaming technology company Aristocrat Leisure Limited (ASX: ALL) rose by 3.01% to $69.21.

JB Hi-Fi Ltd (ASX: JBH) shares rose by 6.31% to close out the week at $112.63.

JB Hi-Fi will report its results on Monday, 11 August.

Shares in furniture retailer Harvey Norman Holdings Limited (ASX: HVN) lifted 3.56% to $5.82 apiece.

The ASX 200 retail share hit a four-year high of $5.85 on Friday.

Breville Group Ltd (ASX: BRG) lifted 3.78% to close the week at $33.24.

Breville will release its results on Wednesday, 20 August.

Shares in Premier Investments Limited (ASX: PMV) lifted 2.18% to $21.10.

Lovisa Holdings Ltd (ASX: LOV) shares rose by 3.08% to close at $33.81.

Lovisa will release its results on Wednesday, 27 August.

Sector fallers last week

The Lottery Corporation Ltd (ASX: TLC) share price declined 1.47% to close out the week at $$5.37.

Last week, the Lottery Corporation announced that Wayne Pickup would be the next Managing Director and CEO.

Pickup will succeed Sue van der Merwe, who announced her retirement in March after a 35-year career in the lottery industry.

The Lottery Corporation will report its results on Wednesday, 20 August.

Outside the ASX 200, Star Entertainment Group Ltd (ASX: SGR) shares fell 23% to 9.2 cents.

The Star Entertainment share price fell to a record low of 9.1 cents on Friday on news that its sale of Queen's Wharf is off.

On Thursday, Star Entertainment reported an unaudited $270 million in revenue for 4Q FY25, down 31% on 4Q FY24.

Star Entertainment is scheduled to release its results on Thursday, 28 August.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Consumer Discretionary (ASX: XDJ)2.56%
Financials (ASX: XFJ)1.45%
Industrials (ASX: XNJ)1.31%
Consumer Staples (ASX: XSJ)0.74%
A-REIT (ASX: XPJ)0.62%
Communication (ASX: XTJ)0.58%
Information Technology (ASX: XIJ)(0.63%)
Healthcare (ASX: XHJ)(0.88%)
Utilities (ASX: XUJ)(0.97%)
Energy (ASX: XEJ)(1.66%)
Materials (ASX: XMJ)(3.92%)

Looking ahead

The combination of seemingly contained inflation and expectations of further rate cuts bodes well for ASX 200 retail shares.

Last week, we profiled 7 ASX retail shares with buy ratings.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, The Lottery Corporation, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Jb Hi-Fi, Lovisa, Premier Investments, The Lottery Corporation, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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