Macy’s, Costco, and other big chains say shoppers are pulling back at their stores and changing what they buy.
That could be a red flag for the US economy.
Costco finance chief Richard Galanti said last week that some customers were switching from pricier steaks and beef for cheaper meats like pork and chicken, a trend common in previous recessions, he said.
Macy’s and Costco appeal to middle- and higher-income shoppers, and their results show a pullback among that demographic.
Now, many are shifting their discretionary spending to travel and other services they were not able to find during the pandemic.
Lower-income shoppers also have less money to spend on discretionary purchases and are slowing down.
Dollar General (DG) said its core lower-income customers were passing up discretionary products like home goods and clothing.
Some retailers are benefiting from the shift to food and essentials, such as Walmart.
Cosmetics and skincare chains Ulta and Elf are logging surging sales.
Read More Here: Macy’s and Costco sound a warning about the economy
