Australia-listed consumer stocks set for best half-year since 2019

SUPER RETAIL

30/06/2023 24:35

** Australian consumer index  .AXSJ  is on track to gain
6.4% in H1 of 2023, marking the best half-year since 2H19 if
gains hold 
    ** The rise compares with a 4.8% drop in H1 last year;
outperforms a modest 2.2% gain in ASX200 benchmark index  .AXJO 
    ** Top Australian grocer Woolworths Group  WOW.AX , which
saw a bigger-than-expected rise in Q3 sales, set to gain 18.8%
in H1 - its best half-year since December 2007 
    ** Shares of Woolworths' smaller peer, Coles Group  COL.AX ,
on track to advance 10.2% in H1
    ** UBS says compared to their peers, COL & WOW to benefit
from their superior store network, execution and online offers
    ** Shares of smaller retailer Metcash  MTS.AX  set to drop
4.0% in H1, third consecutive half-year loss    
    ** Inflation in Australia has been sticky in H1 prompting
customers to cut back on discretionary items 
    ** "Industry sales outlook is improving due to a rational
competitive environment & as prices are supported by inflation,
which remains elevated" - UBS
    ** UBS downgraded ratings on consumer discretionary
retailers to "sell" from "neutral", which includes companies
like Domino's Pizza Enterprises  DMP.AX  and Super Retail Group
 SUL.AX , among others

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Consumer firms    https://tmsnrt.rs/3JDQAqu
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 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))