Growing fears Aussies will stop spending as retail stocks drop

A number of major retailers suffered share price drops this week, reflecting fears that stagnant interest rates will force consumers to stop discretionary spending.

The stock exodus was prompted by JB Hi-Fi posting a modest 0.1% sales drop for the March quarter. Its shares tanked by 5.2% on Thursday, which saw other big box retailers fall, with Harvey Norman dropping 3.8%, Nick Scali down 4.5%, Super Retail Group down 5.5%, Temple & Wester dropping 18%, and Baby Bunting suffering a dramatic 23% drop.