We have updated our retail sales forecasts, which are modestly higher over the next two years. We forecast FY24e retail sales growth of 1.7% (previously 1.5%). We estimate FY25e retail sales will rise 3.1% (previously 2.5%). We expect the worst of the deceleration in sales will be over by December 2023. The normalisation of volumes after excess growth during COVID-19 has played out. Households have handled the steepest period of interest rate increases by dipping into excess savings. Housing indicators are starting to improve and we have tax cuts on the horizon to support a mild recovery in sales growth for FY25e.