Economic uncertainty is affecting even its most affluent customers.
Transcript:
Kelsey Barberio: Add Macy’s to the growing list of retailers with a not-so-optimistic outlook in 2025. The struggling retailer says it expects sales to decline again this year. Macy’s predicts roughly $21 billion in sales for its current fiscal year, about a billion dollars less than last year.
CEO Tony Spring claims the economic uncertainty in the U.S. is affecting all shoppers, saying on Macy’s most-recent earnings call “I think the affluent customer that’s shopping Macy’s is just as uncertain and as confused and concerned by what’s transpiring.”
The latest Personal Consumption Expenditures index saw prices jump 2.5 percent from a year ago. The worrisome reading, however, was real consumer spending, which dropped a larger-than-expected half percent. That’s the biggest decline in almost four years. That number suggests the economy could be in the midst of a consumer-driven slowdown.
Despite company-owned brands Bloomingdales and Blue Mercury posting small gains, sales at Macy’s dropped 5%. And in January the company announced it would be closing 66 stores, with another 84 slated to close by the end of 2026.
That’ll do it for your daily briefing. From New York City, I’m Kelsey Barberio with TheStreet.
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