HVN/Harvey Norman/BAP/BRG/JBH

Well, it is now clear where the consumer pain from higher rates is showing up.

Those are big, negative, numbers.

Bapcor (the automotive parts company) also downgraded recently.

That’s where the pain is showing up.

The Good Guys (TGG), which is owned by JB Hi-FI also showed like for like sales growth (the “cleaner” number, because it is not impacted by store openings or store closings) was down 12%.

So, the consumer pain is here. And, only likely to get worse if we are to have 2 more rate hikes by December (or shortly thereafter).

The Bapcor business model was held out as “somewhat recession resistant” because “what are you going to do, not fix the car where it breaks”.

But there is still ample room for “I’m going to skip a service or two unless the old Honda gives out”.

Breville (BRG) incidentally, does sell a lot of product through HVN-style stores, so we are watching them too.

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