The boss of retail powerhouse Wesfarmers, Rob Scott, says there is no doubt consumers are finding it tougher today than six months ago, and is bracing for an even more difficult half with rising costs continuing to pressure both consumers and businesses.

The head of the Perth-based conglomerate, which owns Bunnings, Kmart and Officeworks, told investors at its Sydney strategy day that “the honeymoon is very much over” after the past few years of government handouts and ultra-low interest rates.