Americans Have Continued Shopping, Despite Inflationary Pressures
New York, NY, May 27, 2022-American shoppers boosted spending at department stores and discount chains, showing resilience amid inflationary pressures that have weighed on consumers and dented results at many big retail chains, reports the Wall Street Journal.
“Macy’s Inc. and Dollar Tree Inc. reported strong sales increases in their most recent quarters. Those results came as shoppers spent more on clothing for work and special occasions, while turning to discount chains for necessities to offset rising costs for food and fuel. Another budget chain, Dollar General Corp., posted flat sales but raised its outlook for the full year, saying cash-strapped shoppers are gravitating to its stores more frequently.
“The results, which sent shares of all three chains higher, ran counter to the performance of other large retailers such as Walmart Inc. and Target Corp., which last week reported steep profit declines as rising supply-chain, wage and inflation-related costs ate into earnings. On Thursday, Gap Inc. reported a steep sales decline and swung to a net loss. The company said its poor results were due to macroeconomic conditions and size and assortment imbalances at its Old Navy chain, which has been offering a wide range of sizes for all body types.
“Executives at Macy’s and the dollar chains said they are feeling many of the same pressures that have hurt other retailers, and in some cases warned those forces would start to show up in their own results.
“‘Consumers are still spending, but headwinds are getting increasingly fierce,’ Macy’s chief executive Jeff Gennette said in an interview. He added that its lower-income shoppers-those with household incomes of $75,000 or less-are trading down to less expensive items while middle- and higher-income shoppers have been less affected by inflation.”