Australian automotive retailers traded at 11.2 times earnings in 2026 while apparel multiples slumped to 6.4 times, according to Grant Thornton Australia’s Dealtracker transaction data.

The five-turn valuation divide reflects an aggressive buyer preference for cash-generative operations with locked-in distribution over discretionary fashion merchants struggling with discount cycles.

Grant Thornton released the findings in the final installment of its four-part transaction study, warning retail boards that chasing top-line sector expansion will not insulate them from acquisition discounts. Dealmakers are pricing businesses based on procurement controls, balance-sheet resilience, and customer retention rather than broad category growth projections.

Valuations across consumer discretionary assets show stark divergence within the same retail spending pools. Automotive businesses commanded double-digit multiples by pairing vehicle sales with parts supply, workshop servicing, and rigid customer replacement cycles.

Apparel operators faced steep discounts as selective shoppers trimmed discretionary wardrobes and forced merchants into promotional price battles. Brand equity alone no longer commands premium deal pricing without evidence of repeat purchase loyalty that survives inflationary pressure.

Tam Goldin, financial advisory partner at Grant Thornton Australia, pointed out that category classification accounts for only part of a target’s pricing. “The sector matters, but the underlying business model matters more,” Goldin said.

Private capital in Australia has pivoted toward specialized operators that scale distribution networks without multiplying administrative overhead. Scaled retailers with integrated inventory pipelines hold pricing power, whereas mid-tier general merchants face margin compression across both physical stores and digital storefronts.

Technology spending in the sector has shifted from speculative platform rollouts to strict return hurdles.

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