Wealthy shoppers are splurging at Macy’s. Low-income shoppers are pulling back at Walmart
Affluent shoppers are splurging on new outfits at Macy’s, Nordstrom and other high-end outlets, while lower-income customers are pulling back on discretionary items, leading retailers say.
“While macroeconomic pressures on consumer spending increased during the quarter, our customers continued to shop,” Macy’s CEO Jeffrey Gennette said in a press release.
Macy’s saw a “notable shift” in consumers buying clothes for special events and shopping in stores, Gennette said. Dresses, women’s shoes, accessories and men’s tailored clothing saw strong sales performance during the quarter.
“Luxury sales remained a standout for our business as shopping behavior among high-income consumers has so far remained less affected by inflation,” he said on a call with analysts. “The customer that’s under $75,000 of annual income — they were the most affected.”
Macy’s raised its guidance for the year, pushing its stock up 12{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} in early trading Thursday.
“Customers refreshed their wardrobes for occasions such as social events, travel and return to office,” Nordstrom said. The department store sector has struggled in recent years, but Macy’s and Nordstrom are benefiting from wealthier consumers making discretionary purchases.
Luxury goods and clothing brands have also capitalized on spending from higher-income shoppers.
But there is a split in shopping behavior that runs along economic lines, some companies say. Federal stimulus spending has ended, and inflation has grown at the fastest pace in decades, leading lower-income consumers to alter their buying patterns.
Companies say lower-income shoppers are slowing their spending on discretionary items, buying cheaper private-label brands and adding fewer items to their shopping carts.
Quoted from Various Sources
Published for: Ipodifier
