Macy’s\n \n on Thursday cut its annual profit and sales forecast after customer demand slowed in March. “We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories,” Macy’s CEO Jeff Gennette said in a statement. Same-store sales at the Macy’s sank 8.7% last quarter, while the higher-end department store Bloomingdale’s dropped 3.9%.
These shoppers have bought most of the clothing, electronics, furniture and other goods they want over the past three years during the pandemic. Now, many are now spending discretionary income on travel and other services they were not able to find during the pandemic. Some airlines and hotels are posting record bookings. That shift is hurting retailers.
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