Australian Retail & Consumer Sector "2Q26 Consumer Survey: Spending inte..."

Research evidence excerpt

Australian Retail & Consumer Sector "2Q26 Consumer Survey: Spending inte..."

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Australian Retail & Consumer Sector Equities

Australia2Q26 Consumer Survey: Spending intentions

remain strong due to household incomes Retail

Shaun Cousins

Analyst

shaun.cousins@ubs.com

Consumer: Spending intentions down q/q albeit remain very strong +61-2-9324 3844

UBS Evidence Lab surveyed ~1,000 Australian adults between 11 May and 22 May in the James Meares

28th wave of its quarterly consumer survey (> Access Dataset). Key takeaways: (1) Analyst

Consumer spending intentions are down q/q vs 1Q26, yet remain the second highest on james.meares@ubs.com

record, with the movement in spending expectations mixed across income cohorts +61-29-324 3575

(lower for high [A$150k>] & low [<A$60k] income earners, flat for middle [A$60-150k] Zack Pontey

income earners), due to very strong but slightly lower household income & savings Associate Analyst

intentions. (2) Net spending intentions positive for all categories (except gambling), with zack.pontey@ubs.com

growth vs pcp highest in fuel category, although other essential categories of utilities +61-2-9324 2475

& rent were down vs 1Q26. (3) Cost of living pressures increased for all incomes, with Stephanie La

fuel the significant driver (arguably from the impact of the Middle East conflict), while Associate Analyst

rent & utilities eased in 2Q26. stephanie.la@ubs.com

+61-2-9324 2655

Stock implications: WOW, WES, DMP and KFC appear well positioned Tim Plumbe

(1) COL vs WOW: Woolworths extended its lead as the primary grocery retailer across Analyst

offline (42% [39% 1Q26]) vs Coles (28% [30%]), noting WOW has 30% more stores vs tim.plumbe@ubs.com