JBH (large consumer and home electronics retailer) sold off heavily yesterday, given a fairly weak sales trading update.

The below is total sales, including store rollouts, the decline in activity is quite evident to the eye…

…but it is the like for like sales growth that we are most interested in, and that is even less flattering.

JBH is an amazing company, but retail is on the nose post a) COVID normalisation b) high inflation environment causing cost-of-living pressures for the consumer and c) higher interest rates.

We are choosing to remain UW the consumer, for now, given all these concerns.

ARB sales out the day prior, alongside Supercheap, and Baby Bunting, support that view. ARB sales are growing below inflation, and have been flat for several years, Supercheap, particularly within rebel, are pointing to a difficult macro backdrop for apparel demand, and Baby Bunting is still suffering from the COVID hangover on maternity (and the associated difficult in starting a new family/household given housing availability (rent) and affordability (to buy).

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