Major retail giants such as Macy’s and Costco have recently witnessed a noticeable shift in consumer behavior, indicating a potential concern for the overall health of the U.S. economy.

Macy’s, in particular, revised its annual profit and sales projections downward due to a decline in customer demand throughout March.

CEO Jeff Gennette acknowledged that the pullback by U.S. consumers, especially at Macy’s, exceeded their initial expectations, CNN reported.

Customers have reallocated their spending towards essential items, food, and services. Macy’s experienced a significant drop in same-store sales, with a decline of 8.7% in the last quarter.

Similarly, Bloomingdale’s, the upscale department store under Macy’s, saw a decline of 3.9% in the same period.

These observations have raised concerns about the state of the economy, as Macy’s is not the only retailer experiencing a shift in customer demand.

Costco’s Chief Financial Officer, Richard Galanti, recently noted that some customers have been opting for more affordable meats like pork and chicken, shifting away from pricier options such as steaks.

Galanti highlighted that this trend is commonly observed during previous recessions.

Written by staff