JB Hi-Fi Flags October Sales Slowdown as Wesfarmers' Bunnings and Super Retail Group Report Softer Trading Before Christmas

Highlights

• JB Hi-Fi says Group sales slowed in October, ahead of the Black Friday and Christmas trading periods.

• Wesfarmers says lower seasonal and commercial sales at Bunnings in recent weeks have weighed on that business.

• Super Retail Group's like-for-like sales rose just 0.2% in the first quarter of FY27, with Macpac down 11.7%.

Introduction

Three of Australia's largest listed retailers updated shareholders on the same morning, and each update pointed to cooler spending. Only one of them, JB Hi-Fi Limited (ASX: JBH), specifically named October as the month when sales slowed.

Wesfarmers Limited (ASX: WES) described a recent softening at Bunnings, and Super Retail Group Limited (ASX: SUL) reported that its like-for-like growth had moderated. The timing matters because these comments land only weeks before Black Friday and Christmas, trading periods JB Hi-Fi describes as important.

JB Hi-Fi Puts a Month on the Slowdown

For the September quarter, JB Hi-Fi Australia posted total sales growth of -0.4% and comparable sales growth of -1.4%. The Good Guys came in at -0.1% total and -0.4% comparable, while e&s fell 3.7% on a total basis.

New Zealand was the outlier, with total sales up 17.3% and comparable sales up 10.7%. The retailer added that trading has been uneven and competition has intensified, with shoppers chasing value and concentrating their buying around promotions.

Its most pointed remark concerned October, when the Group said sales had slowed before Black Friday and Christmas. The company did not say how much sales slowed in October.

Bunnings Loses Some Momentum at Wesfarmers

In its AGM address, Wesfarmers said Bunnings' year-to-date sales growth has eased compared with the second half of FY26. The quarter started more strongly, but the company said weaker seasonal categories and commercial sales in recent weeks have weighed on overall sales.

Wesfarmers did not cite October specifically. Kmart Group and Officeworks were both described as growing sales broadly in line with the second half of FY26.

The conglomerate itself linked the wider backdrop to elevated inflation and higher interest rates, which it said are hurting demand in parts of the economy and squeezing household and business budgets. It noted the Reserve Bank had lifted the cash rate four times this year.

Super Retail's Brands Diverge

Super Retail Group reported first-quarter like-for-like growth of 0.2% and total sales growth of 2.0%. By brand, Supercheap Auto lifted like-for-like sales by 2.5%, rebel by 0.3%, BCF fell 1.1% and Macpac dropped 11.7%.

The company did not single out October either. It attributed the moderation to industry-wide pressure on consumer confidence and discretionary spending, pointed to fuel prices as a drag on BCF, and tied Macpac's result to promotional timing and a milder winter.

Even so, management said year-to-date earnings were tracking in line with its expectations.

How the Shares Traded

The shares of all three retailers were lower in morning trade. Wesfarmers was at AU$74.23, down 3.8%, and Super Retail Group was at AU$12.59, down 3.2%. JB Hi-Fi was trading at AU$70.11, down 0.8%.

By then, about 756,000 Wesfarmers shares had changed hands, along with roughly 264,000 Super Retail Group shares and 234,000 JB Hi-Fi shares.

What Investors Should Watch

• Whether JB Hi-Fi gives figures for its October slowdown at its next update.

• Whether Bunnings' seasonal and commercial sales recover over the summer selling season.

• Whether Super Retail can stop the decline at Macpac and in BCF's like-for-like sales.

Conclusion

Read together, the three updates show three retailers losing pace as the year-end selling season approaches, though only JB Hi-Fi tied that change to October. Each pointed to different pressure points, from Bunnings' seasonal ranges to Macpac's weather problems.

Their December-half results will show whether the Black Friday and Christmas period made up the lost ground.

Note- All data presented is based on information available at the time of writing.

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