Three of the major retailers listed on the ASX have published trading updates today, and the takeaway is that the sector is doing it tough.
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Bunnings failing to fire
This was shown most markedly in Wesfarmers Ltd (ASX: WES) being one of the worst performers in early trade, with its shares down 3.2% to $74.68.
The company's Managing Director Rob Scott said they had had a "reasonable" start to the year, with a strong operating performance from the company's mining operations offsetting some moderation in retail demand.
Mr Scott noted the impact of increased interest rates on consumers as well as higher inflation.
In the company's Bunnings division, sales growth had moderated since the second half of FY26, Mr Scott said.
He added:
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.
The Kmart and Officeworks divisions posted sales growth, "broadly in line with the second half of the 2026 financial year''.
RBC Capital Markets said the update was negative, and while no specific trading update was given, the key takeaway was the softness in sales at Bunnings.
Sales slide at electronics retailer
JB Hi-Fi Ltd (ASX: JBH) also put out a trading update, with its shares drifting 0.4% lower to $70.38.
Total sales for the company's Australian JB Hi-Fi operations fell 0.4% for the first quarter, while comparable sales were down 1.4%.
The New Zealand division delivered strong comparable sales growth of 10.7%.
The Good Guys delivered comparable sales down 0.4%.
The company said it "continues to see variability in trading and heightened competitive activity, with customers remaining focused on value and increasingly shopping during promotional events''.
The company said it had experienced a slowing in sales in October, ahead of the Black Friday and Christmas trading periods.
RBC Capital Markets said JB Hi-Fi missed expectations for sales in its Australian division, however performed better than expected in New Zealand.
RBC said the update was negative for the stock, however, its price target on JB Hi-Fi is still higher than the current price at $73.
Super Retail also limping along
And finally, Super Retail Group Ltd (ASX: SUL) shares were down 2.2% to $12.72 after the company reported its quarterly results.
Group sales were up 2% on the same period last year, while like-for-like sales were up just 0.2%, with wide variability across its divisions.
Supercheap Auto delivered like-for-like sales growth of 2.5%, Rebel grew 0.3%, while BCF fell 1.1%, and Macpac plunged 11.7%.
RBC Capital Markets said sales trends appeared weak across the board, having slowed down since the recent seven week trading update, and they expected consensus downgrades for the company from analysts.
RBC's price target on Super Retail Group shares is $15.60.
My takeaway
Taken together, these three trading updates indicate that Australian retailers are struggling to grow top line sales.
JB Hi-Fi and Bunnings in particular have been strong performers over a long period of time, and to see them struggle to grow sales indicates that consumers are wary of spending.
With another interest rate increase almost certain next week, things are only likely to get harder.
