2310 GMT -- While the August reporting season wasn't as bad as expected for Australian retail and consumer stocks, the sector still faces big headwinds, UBS says. Consumer spending habits are likely to change as buyers trade down to cheaper-priced apparel and general merchandise. Consumers are also likely to buy cheaper private label food products, and spend less out of home, the bank says. UBS says it prefers companies like Treasury Wine that are exposed to affluent households, or younger shoppers that aren't yet renting, such as Lovisa. It also likes stocks that serve older consumers, and retailers that are lower priced or able to win from shoppers trading down, such as Wesfarmers's Kmart chain. Stocks to avoid include Harvey Norman, Domino's Pizza Enterprises, Premier Investments and Super Retail, UBS says. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
September 06, 2023 19:10 ET (23:10 GMT)
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