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ASX retail stocks are on a horror run for good reason

Tom Richardson
Tom RichardsonJournalist

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Sharemarket traders are positioning for a steep downturn across the Australian economy as small-cap retail companies skewed towards middle and low-income earners get dumped in anticipation of a rough 12 months ahead.

The alarm bells rang louder on Wednesday, after ASX-listed budget-fashion bellwether Universal Stores said shoppers cut their spending in April and May as cost of living increases – including rents and food prices – hurt young shoppers.

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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com

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    Original URL: https://www.afr.com/markets/equity-markets/asx-retail-stocks-are-on-a-horror-run-for-good-reason-20230525-p5db5c