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Macy’s flagship store in Herald Square in New York City.
new York
CNN
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Macy’s, Costco and other big chains say shoppers are pulling out of stores and changing their purchases. That could be a warning sign for the US economy.
Macy’s (M) cut its full-year profit and sales guidance on Thursday after customer demand eased in March.
“We planned the year on the assumption that the economic health of consumers would be in question, but beginning in late March, demand trends in our discretionary categories continued to weaken,” Macy’s CEO Jeff Gennette said in a statement.
Macy’s stock fell about 6% in premarket trading on Thursday.
The company was the latest retailer to notice changes in customer demand.
Richard Galanti, chief financial officer of Costco (COST), said last week that some customers were switching from more expensive steaks and beef to cheaper meats like pork and chicken. It’s a trend that’s been common in previous recessions, he said.
This is breaking news and will be updated.
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