JB Hi-Fi, Wesfarmers and Super Retail Group all handed down trading updates on Thursday, and signalled a heavy dose of caution about the retail outlook.
JB Hi-Fi's sales growth fell 0.4 per cent in the September quarter, down 1.4 per cent on the same three months in 2025 and moderating even further since, chief executive Nick Wells said.
"In October, the group has seen sales slow ahead of the important Black Friday and Christmas trading periods," Mr Wells told shareholders at the company's annual meeting in Sydney.
"The group continues to see variability in trading and heightened competitive activity, with customers remaining focused on value and increasingly shopping during promotional events."
Sales for its Good Guys and e&s brands shrunk 0.4 per cent and 4.5 per cent respectively over the quarter.
Bunnings' sales growth moderated in the financial year-to-date despite a strong start, with lower sales across seasonal categories, owner Wesfarmers reported.
Super Retail's Supercheap Auto and Rebel brands proved resilient, but BCF sales were hit by surging fuel costs due to the Iran war, while Macpac battled during Australia's worst snow season in 20 years.
The performances have come against a backdrop of stubborn inflation, high fuel prices, and as markets and punters brace for an expected fifth interest rate hike for the year.
A further 25 basis point increase at next week's meeting would take the official cash rate to 4.85 per cent, its highest level since 2008.
Making matters worse for JB Hi-Fi, memory demand from artificial intelligence and data centre expansion is turbocharging big ticket consumer electronics prices.
"In computers, we've seen circa 50 per cent price rises over the last six months, in gaming, it's kind of more 10 to 20 per cent," Mr Wells said.
Freight had also been under pressure from soaring fuel costs, but distributors had been trying to soften the blow to already cautious consumers, the company's boss said.
"Suppliers are trying to absorb those price increases as much as they can today, and they've done that well," Mr Wells said.
On the positive side, the JB Hi-Fi's New Zealand expansion continued to bear fruit, with more than 10 per cent sales growth compared to the same quarter in 2025.
In August, JB H-Fi suffered one of its worst days on the stock market after it pointed to a softer sales environment in the first four weeks of July.
On August 17, its shares dropped 12.3 per cent to $71.65, exceeding a 10.8 per cent slump on March 23, 2020, at the start of the COVID-19 pandemic.
They were down 1.2 per cent to $69.83 on Wednesday afternoon, as Wesfarmers tumbled more than four per cent and Super Retail lost 3.2 per cent.
