• Thu. Oct 5th, 2023

Macy’s and Costco sound a warning about the economy – Want-Television | Indianapolis News | Indiana Climate


Jun 1, 2023
Macy’s and Costco sound a warning about the economy – WISH-TV | Indianapolis News | Indiana Weather

New York (CNN) — Macy’s, Costco and other huge chains say shoppers are pulling back at their shops and altering what they obtain. That could be a red flag for the US economy.

Macy’s (M) on Thursday reduce its annual profit and sales forecast soon after client demand slowed in March.

“We planned the year assuming that the financial overall health of the customer would be challenged, but beginning in late March, demand trends weakened additional in our discretionary categories,” Macy’s CEO Jeff Gennette stated in a statement.

Exact same-retailer sales at the Macy’s sank eight.7% final quarter, even though the larger-finish division retailer Bloomingdale’s dropped three.9%.

Macy’s stock dropped about six% in the course of pre-market place trading Thursday.

The firm was the newest retailer to note shifts in client demand.

Costco (Expense) finance chief Richard Galanti stated final week that that some shoppers had been switching from pricier steaks and beef for less costly meats like pork and chicken. This is a trend that has been popular in prior recessions, he stated.

Macy’s and Costco appeal to middle and larger-revenue shoppers, and their outcomes show a pullback amongst that demographic.

Also on Thursday, Dollar General (DG) said its core decrease-revenue shoppers had been passing up discretionary merchandise like property goods and clothes. The firm slashed its outlook on weak client demand, sending its stock falling ten% in the course of pre-market place trading.

“The macroeconomic atmosphere is additional difficult than the [company] had previously anticipated,” Dollar Common stated in a statement. It is “having a considerable influence on customers’ spending levels and behaviors.”

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