While consumers are trading down to more budget options in some retail areas,others are holding up well.
Discretionary retailers including Adairs,Michael Hill and Baby Bunting are among those that have reported falling sales amid slower spending.
The baby goods retailer sells plenty of essential goods – so why is the stock down 57 per cent over the past year?
Baby Bunting has strengthened its position as the dominant speciality baby retailer,picking up significant market share after a string of rivals collapsed.
Baby Bunting and its investors see long-term gains on the horizon once the retailer has made it through the short-term pain caused by the collapse of the retailer's four largest competitors.
Baby Bunting is struggling with the kind of problem most businesses could only dream of.
Aggressive discounting has contributed to a significant fall in Baby Bunting's first-half profit.