Now that reporting season is over for Australian retail, we have finalised the themes and issues observed during FY26. The strength of sales trends in FY26 has been met with weaker trading updates going into FY27e as the consumer faces a number of headwinds to end 2026 – interest rates hikes, falling house prices and higher petrol prices add risk to the retail outlook. The impacts are likely to be more significant in the 1H27e fiscal period and more painful in housing-related retail categories and takeaway food.

Now that reporting season is over for Australian retail, we have finalised the themes and issues observed during 1H26. This is important context as there are now quite a few body blows facing the consumer – higher interest rates and higher petrol prices clearly add risk to the retail outlook. The impacts are likely to be more significant in the 1H27e fiscal period and more painful in housing-related retail categories and takeaway food.

This chart pack provides subscribers with insights about the retail operating environment and outlook for sales, gross margins and operating leverage. The chart pack has been compiled post the FY25 reporting season across the retail market providing fresh insights about the sector.