Consumers are spending, but Wall Street and businesses expect a tighter squeeze ahead
Macy’s, Target and Dollar General are warning investors their sales will suffer this year as consumers shift spending to essentials
NEW YORK (AP) — Investors and a wide range of retailers are taking a dim view of the remainder of 2023 and expect consumers to buckle under pressure from inflation.
Macy's, Target and Dollar General are warning investors about weaker sales through the rest of the year as consumers shift their spending to essentials. Investors themselves have sold off shares of key retailers, with stock prices for many companies down substantially in a year when the broader market is making solid gains.
The concerns are growing despite resilient retail sales reports from the government. The latest update for May showed surprising growth despite pressure from still-high inflation and rising borrowing costs. The Commerce Department reported that retail sales rose 0.3% in May, surprising analysts who expected a slight dip.
The gains in May, though, came mostly from auto and parts dealers. Sales at electronics and furniture stores showed only modest gains, while sales were unchanged at clothing retailers.
