Fear factor grips retailers as spending slows

Simon Evans, Carrie LaFrenz and James Eyers

Updated Jun 16, 2023 – 5.50pm, first published at 5.44pm

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A sharp slide in sales is forcing retailers to accelerate discounting and promotions amid warnings that the downturn in consumer spending could be deeper than during the early 1990s recession.

While the economy added a surprisingly strong 76,000 jobs last month, unpublished figures show clothing and stationery stores owned by Solomon Lew’s Premier Investments sales fell 20 per cent on a like-for-like basis in the last week of May from a year earlier, sources close to their preparation told AFR Weekend.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide.

Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club.

James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay