Super Retail Group’s strong 1H23 result was accompanied by accelerating sales in its January 2023 trading update. Can the company buck the broader macro trend where signs of slowing sales are emerging? It’s unlikely in our view. Fading inflation and a peak in domestic tourism make it likely there is a sales slowdown by mid-year. Super Retail’s gross margins are likely to drop as sales slow even though it has some cost reductions in sourcing and sea freight.