JB Hi-Fi has reported falling first-quarter sales across its Australian electronics and appliance businesses, joining Wesfarmers and Super Retail Group in a wave of soft trading updates that has left retailers banking on Black Friday to rescue the half.

Ahead of its AGM today, JB Hi-Fi said comparable sales at its Australian electronics business fell 1.4% in the first quarter against the same period last year, while comparable sales at The Good Guys slipped 0.4%.

Both results came in below market expectations. JB Hi-Fi Group shares fell 1.7% to $69.69, extending a slide that has taken the stock down about 28% from $96.25 in January.

The ASX 200 Consumer Discretionary index was down 2% by late morning, its third straight session of losses.

October the problem month

Analysts say the key issue for JB Hi-Fi is a sharp slowdown in October as consumers delay purchases ahead of Black Friday and Christmas.

The company said customers were focused on value and were increasingly buying during promotional events, amid heightened competitive activity. Suppliers report many consumers are holding back on electronics and household goods while they wait for deals.

The latest numbers were broadly in line with UBS forecasts. However, analysts had expected a modest improvement to -1.1% for the rest of the half, and October’s weakness now puts that at risk.

New Zealand was the standout for the group, with comparable sales up 10.7% and total sales up 17.3%. Comparable sales at e&s fell 4.5%.

The update comes weeks after JB Hi-Fi Group parted company with buying group NARTA.

Wesfarmers blames rates and inflation

Wesfarmers also flagged weaker trading, blaming elevated inflation and four interest rate rises this year for weighing on demand.

“Elevated inflation and higher interest rates continue to impact demand in parts of the Australian economy and are placing pressure on household and business budgets,” Wesfarmers managing director Rob Scott said.

Bunnings sales growth moderated over the first three months of the financial year, continuing a trend seen since the second half of FY26. A stronger start to the quarter was offset in recent weeks by weaker seasonal and commercial sales. Analysts estimate growth slowed by about 1% across September and October.

Kmart is trading broadly in line with the second half of FY26, but FY27 will carry $30 million to $40 million in costs for its new Moorebank omnichannel facility. Officeworks is steady.

“Retail trading is clearly slowing”

Barrenjoey analyst Tom Kierath told the AFR the updates suggested the slowdown was becoming more pronounced across discretionary retail, with trading weaker than retailers had indicated in August, when many reported resilient sales growth for the year to June 30.

“Retail trading is clearly slowing, with Wesfarmers, Super Retail and JB Hi-Fi delivering softer sales updates compared with August updates. October seems especially weak, which is partly as consumers anticipate Black Friday,” Kierath said.

“Retailers note the recent rate hike has impacted trading.”

Rate pressure building

The weak updates land as households brace for a fifth Reserve Bank rate rise this year at next week’s policy meeting, which would take the cash rate to 4.85%, its highest level in 18 years.

The RBA’s hand is likely to be forced after September inflation data showed its preferred trimmed mean measure rose to 3.7%, well above the central bank’s 2% to 3% target band.

Black Friday bet

Some observers expect a big consumer surge over Black Friday, as pent-up demand from shoppers who have held off is released. Others warn that rising unemployment and further rate rises could spook consumers and keep wallets shut through Christmas.