Discount retailer Boxer has reported slower sales growth in the second half of its financial year, pointing to growing pressure on consumers, even as the group held firm on its profit outlook.
In a trading update for the 48 weeks ended February 1, Boxer said turnover grew 11.9%, with like-for-like sales up 3.9%.
While overall growth remained solid, momentum weakened towards the end of the period. Over the last 22 weeks, turnover growth slowed to 9.8%, while like-for-like sales growth eased sharply to 2.4%.
The second-half slowdown reflects a tougher trading environment. Boxer said sales were strong in September and October, followed by a weaker November as consumers came under strain during the extended Black Friday period. Trading conditions improved gradually in December and January, but not enough to fully offset November’s softer performance.
Despite this, Boxer continued to gain market share throughout the period, according to NielsenIQ data, highlighting its appeal to value-conscious shoppers in a pressured economy.
Boxer’s growth was not driven by higher prices. Internal selling price inflation for the period was negative 1%, meaning prices on a comparable basket of goods were, on average, lower than a year earlier. This suggests Boxer absorbed pricing pressure to protect affordability, allowing shoppers to buy everyday essentials at slightly lower prices despite broader cost-of-living pressures.
The combination of slowing sales growth and falling prices points to a consumer that is increasingly stretched. Shoppers are spending cautiously, prioritising value and trading down, which benefits discount retailers like Boxer but limits their ability to push through price increases.
Boxer said it expects full-year 2026 financial year sales growth, measured on a 52-week basis, to be slightly ahead of the growth reported for the 48-week period, helped by a softer February 2025 base. The group remains on track to meet its full-year trading profit growth objective, it said.
The retailer is broadly on track with its store rollout plans, though liquor store expansion remains dependent on the approval of outstanding liquor licences, which could affect growth in a higher-margin category.
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