Super Retail Group’s weak Easter trading update has added to mounting concerns that Australia’s major retailers are being squeezed by rising costs, higher prices and increasingly selective consumers.

The owner of Supercheap Auto, Rebel, BCF and Macpac saw its shares tumble as much as 13% after revealing like-for-like sales growth slowed to just 0.4% across the second half to date, with management blaming rising fuel prices, higher interest rates and weaker consumer confidence.

The result mirrors concerns raised this week by JB Hi-Fi, whose shares also fell sharply after warning of supply chain pressures, rising component costs and growing competition heading into the critical EOFY sales period.

Together, the updates paint a broader picture of the challenges facing Australian retailers in 2026.

These include slowing discretionary spending, rising operating costs and mounting pressure on margins despite aggressive price increases across multiple categories.

Many have lifted wholesale pricing by 10 to 15% in recent months due to global supply chain disruptions, fuel costs and currency pressures, forcing retailers to either absorb higher costs or pass them onto consumers already under financial stress.

At Super Retail, the pain was most visible at BCF, where like-for-like sales fell 3.3% as higher petrol prices discouraged camping, boating and fishing trips, particularly in regional Australia.

Even stronger performing divisions such as Supercheap Auto revealed a shift in consumer behaviour. Sales growth came from essential maintenance, braking and trailer components, while discretionary categories such as power tools weakened.

The retailer also warned margins are under pressure, with second-half gross margins tracking below last year’s levels while FY26 central costs are now expected to rise to $66 million, up from previous guidance of $60 million.

JB Hi-Fi delivered stronger sales growth, but investors focused on warnings about component shortages, supplier cost increases and intense price competition in consumer electronics.

The result is a retail sector increasingly reliant on promotions and discounting to maintain volume while battling structurally higher operating costs.