Macy’s and Target Give Cautious Sales Forecasts, Suggesting Consumer Spending Slowdown

Macy’s and Target have both released cautious sales forecasts for the year, signaling possible softness ahead for the all-important consumer spending, which accounts for two-thirds of U.S. economic output. In its second-quarter earnings report released on Aug. 21, Macy’s slashed its full-year sales forecast, saying that inflation-weary shoppers were more picky with their purchases and that the retailer had to offer more discounts to get people to buy. “The company updated its annual outlook to reflect a more discriminating consumer and heightened promotional environment relative to its prior expectations,” the department store operator said in the report. Macy’s cut its projected net sales for 2024, now expecting between $22.1 billion and $22.4 billion, compared to the previous estimate of $22.3 billion to $22.9 billion. This would represent a decline from the $23.09 billion Macy’s reported in fiscal 2023....