Shoppers are making fewer purchases and fewer trips to stores. But when they do check out at the register, they often spend more, revealing the impact of inflation. Many lower-income shoppers are cutting back on non-essentials like home decor and spending big at discount dollar stores.
These are some of the takeaways from a spate of mid-year financial report cards released by America’s leading retailers, including Walmart, Macy’s and Dollar Tree. They reflect a deep uncertainty that has set into the U.S. economy, with inflation running at the highest rate in decades.
Department store chains Macy’s and Nordstrom, as well as Victoria’s Secret this week joined a growing list of retailers cutting their forecasts for the rest of year. Companies are flagging fewer visits from shoppers compared to a year ago, though some retailers, including home goods seller Williams-Sonoma on Wednesday and Home Depot last week, continued to report growing sales despite slower store traffic.