Originally published: Retailbiz, 29 October 2026
Australian retailers have suffered a fresh setback on the Australian Securities Exchange (ASX) this week, with concerns about inflation, interest rates and weakening consumer confidence weighing particularly heavily on discretionary stocks.
Nick Scali’s profit warning intensified the pressure, while Harvey Norman, JB Hi-Fi and Super Retail Group also declined.
A 7NEWS market report on October 23, citing CommSec, identified retailers among the market’s weakest performers, while International Business Times Australia reported on October 22 that Nick Scali shares had fallen about 16 per cent following its trading update.
The weakness comes as new research from Pureprofile reveals that cost-of-living pressures are forcing Australians to reconsider their Christmas spending, with consumers increasingly seeking discounts while cutting back on gifts, eating out and experiences.
The findings point to a challenging festive trading period for retailers already facing uncertainty about household budgets and discretionary demand.
Pureprofile’s eighth annual Christmas Report, released on October 26 and based on research among 1,015 Australians aged 18 to 64, found that 62 per cent were experiencing moderate to high cost-of-living impacts and cutting back on essential and non-essential purchases. Only 24 per cent considered the economy strong, down from 29 per cent in 2025, while 33 per cent described the year as good or fantastic, compared with 36 per cent previously.
The research found that 79 per cent of Australians were adjusting Christmas spending because of cost pressures. Some 35 per cent planned to spend less on gifts, while 30 per cent intended to choose cheaper food and drink, up from 21 per cent last year.
Pureprofile chief executive Martin Filz said retailers needed to respond with “comfort, reassurance and affordable options” as consumers focused on genuine value for money.
Download the Australia & New Zealand Christmas & Black Friday Report 2026 here.
