Here are 4 awesome ASX retail stocks to buy in FY26 … and 4 to sell

Here are 4 ASX retail stocks to buy in FY26!

Universal Store (ASX:UNI)

Universal Store benefited from the Stage 3 tax cuts more than any other retailer. This is because the fashion chain’s target market is Millennial and Gen Z customers. The revised Stage 3 tax cuts was far more favourable to them than the previous package, providing them with more spending power.

Despite the stereotype of them not having money, the Taylor Swift tour shows that they can spend when they want to. And with more money in their pocket, Universal is proving to be a beneficiary.

In FY25, Universal made $333.5m revenue (up 15.5%), $54.6m underlying EBIT (up 16%) and a $34.8m underlying profit (up 15.2%). It paid 38.5c per share in dividends (representing an 80% payout ratio) and closed the period with $17.2m cash and no debt. Analysts covering the company expect $370m revenue and a $42m profit in FY26.

What are the Best ASX Stocks to invest in right now?

Check our buy/sell tips

Beacon Lighting (ASX:BLX)

Another sector that could see a lot of the money saved from the Stage 3 tax cuts is home improvements. And this is why Beacon, a seller of lights and fans to retail and trade customers, makes this list. The sector has been struggling with supply chain issues, but this company is a vertically integrated business that controls its own chain. Since listing on the ASX a decade ago, Beacon has not raised a cent in capital and is still 55% owned by the Robinson family.

In the longer term, the company is hoping to capitalise on broader trends in the lighting industry, like sustainability and energy efficiency. We think the latter will be relevant given the current highs in electricity prices. We also think that Beacon can continue to expand in Australia and overseas.

Myer (ASX:MYR)

Much of Myer’s >15-year tenure on the ASX has been a disaster. But things could be turning around. It bought Premier Investments’ Apparel Brands division (which includes Portmans, Jacqui E and Dotti brands). Moreover, it hired Olivia Wirth from Qantas Loyalty as CEO – someone who knows a thing or two about loyalty programs, and no doubt will improve the current loyalty program over time which has grown by 6.6% CAGR in 5 years and has 4.6m members.

At a recent investor day, the company said it would win through its data powered retail platform that would know its customer, its portfolio of in-demand products and brands, its efficient sourcing model and its customer experience in-store and online.

Wesfarmers (ASX:WES)

Yes, this is an obvious pick in the retail space. Wesfarmers is a conglamorate that has interests in retail, industrials, chemical and fertilisers. The company’s most famous holdings include Bunnings, Officeworks, Kmart and Target.

But it also hosts a chemicals and fertilisers business, an industrial and safety products business, a joint-venture mining operation at the Mt Holland lithium project in WA, as well as other consumer facing businesses, buying Priceline owner Australian Pharmaceutical Industries (ASX:API) in 2022 and bidding for Silk Lasers (ASX:SLA) soon after. It is Bunnings that is the biggest earner, however.

Here are 4 ASX retail stocks to avoid in FY26!

Bapcor (ASX:BAP)

When we did a version of this article for FY25, we said,’ Would you buy any retailer (or any company for that matter) that had a CEO depart two days before he was meant to start? In our view, that should be enough‘. 12 months on, at least it has a CEO who is in for the long-term, but good times are some way frm the company.

Sometimes, short-term declines in large-cap stocks are a chance to ‘buy the dip’. But there needs to be evidence things are turning around, and there is not any right now other than the company saying it is taking action.

Its profit declined over 15% due to write-offs (including inventories), changes in accounting estimates and uncollectible receivables. It singled out the retail segment and New Zealand as being two tough segments.

Adding insult to injury, 3 directors quit in one day when it released unaudited results – Mark Bernhard, Brad Soller and James Todd. Never a good sign.

Woolworths (ASX:WOW)

At first glance, you’d think Australia’s largest supermarket chain would be a stock to buy. But it is lagging its competitor Coles, as evident in its FY25 results that caused a 15% share price decline.

Group EBIT declined 12.6% to A$2.8bn, while net profit after tax fell 17.1% to A$1.4bn. Margin compression was the central issue, driven largely by higher wages and superannuation costs across the supermarket network. Its capex was $2.5bn due to investments in fulfilment centres.

Meanwhile, Coles’ results were well received. It too is investing heavily in distribution and fulfillment centres, but saw its bottom line grow – EBITDA rose 7.5% to $4.1bn, while EBIT increased 2.2% to $2.2bn. The result was supported by supply chain and store efficiencies, alongside a better product mix that strengthened pricing power.

Cettire (ASX:CTT)

Cettire is a high-end eCommerce retailer. It has shed more than 90% of its market cap in 24 months as margins take a hit, the top line growth began slowing due to Trump’s tariffs and consumers question various aspects its business model, not to mention why they should buy when the CEO keeps selling. Enough said.

City Chic Collective (ASX:CCX)

The plus size fashion retailer has had a tough time, seeing its share price fall from $6 to less than 10c. Trading conditions have proven very difficult, and the company has had a glut of inventory that it has been unable to clear, even with discounting. Investments it made into international markets did not work out and margins returned to the typical low levels you see in the retail industry.

In the absence of any cause for optimism, the only reason you’d buy the company in FY26, is if you think private equity will come in and buy it out. Good luck with that, because there’s no other reason to choose this company over others.