That’s squeezing Macy’s, Kohl’s, Target and other chains. Macy’s\n \n sales dropped 3.1% last quarter from a year ago, while Kohl’s\n \n tanked 6.9%. Kohl’s\n \n also withdrew its financial guidance, citing “significant macroeconomic headwinds” and the abrupt departure of the chain’s CEO Michelle Gass to Levi’s\n \n last week.
Families have been strained by inflation and have shifted their spending to groceries and paying for other daily essentials. “More and more of their household budget goes towards the needs of the family, which limits the amount available for discretionary purchases,” said Christina Hennington, Target’s chief growth officer. To entice customers to buy, these chains have ramped up promotions. This has pinched their profit margins.