Super Retail Group’s trading update reveals a significant deceleration in growth momentum, with group like-for-like sales increasing just 0.4 percent across the second half of FY26 to date, a meaningful slowdown from earlier in the year. This weakness reflects a challenging operating environment driven by multiple headwinds including the impact of the Middle East conflict on consumer activity, elevated fuel prices, rising interest rates, and broader inflationary pressures that have taken their toll on consumer sentiment, particularly during the critical Easter trading period.
The weakness is not uniform across the retailer’s portfolio, revealing important divergences in brand performance and category demand. Supercheap Auto delivered the strongest result with group like-for-like sales growth of 1.6 percent in the second half and 4.3 percent for the full year to date, supported by market share gains in the auto category. However, even this brand has experienced moderation in trading conditions through March and April, with discretionary power tools particularly soft while fuel-related and DIY categories including maintenance and braking components have held up better. Rebel similarly demonstrated resilience with 1.4 percent like-for-like growth and market share gains despite operating in a sports category that recorded declining sales, buoyed by strong performance in men’s wear, recovery gear, and fitness technology.
The most concerning performance came from BCF, which posted negative like-for-like sales growth of 3.3 percent in the second half. The brand proved most vulnerable to elevated fuel prices and fuel supply constraints, which dampened customer participation in outdoor activities, a particularly acute problem during the Easter and school holiday period. The unfavourable calendar separation of Easter and Anzac Day compounded these headwinds across all regions. Macpac similarly faced reduced outdoor activity despite strong year-to-date momentum, though the business appears focused on managing inventory in preparation for its peak winter trading season.
Management’s decision to invest approximately $30 million in additional working capital ahead of anticipated price increases signals confidence in the business despite near-term trading challenges. This capital deployment, focused particularly on Supercheap Auto inventory, suggests management expects pricing pressure rather than demand destruction. The company is also prioritising regional supply distribution in anticipation of potential supply chain disruptions from fuel constraints.
The update does not provide specific guidance on the full-year outlook beyond noting that the group expects duplicated operating expenses and project costs associated with transition to new distribution centre facilities. Investors should monitor whether consumer sentiment stabilises as fuel prices moderate and whether the reduced participation in outdoor activities recovers heading into the crucial winter trading season for Macpac. The announcement is price sensitive and has been classified as material by the ASX.
View the full ASX announcement (PDF)
About Super Retail Group Limited (ASX: SUL)
Super Retail Group Limited is an Australian retailer operating multiple retail brands including Supercheap Auto, Rebel, BCF, and Macpac. The company sells automotive parts and accessories, sporting goods, outdoor leisure products, and camping and fishing equipment across Australia and New Zealand. It is one of the largest retailers in these retail categories in the Australasia region.
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