Mall or summer vacation?
According to department store chain Macy’s, CNBC Thursday (April 7) reports that inflation is putting pressure on low- and middle-income consumers, so some consumers may ask themselves this year. I have a question.
At JP Morgan’s annual retail Roundup event, Macy’s Chief Financial Officer Adrian Mitchell said, “The biggest challenge in thinking about management until early 2022 is where demand comes from. “.
“We believe there is demand there,” he said. “We believe consumers will spend. But will they spend on the discretionary items we sell, or on flights to Florida and travel, or more? Are you going to a restaurant? “
He added to these questions that Macy’s had a hard time planning merchandising. For example, if consumers don’t spend money on these products this summer, the company doesn’t want to order too many beach products and luggage.
CNBC said the effects of inflation are already felt and consumers are spending 59% more on average gas and convenience stores than last year.
As PYMNTS reported earlier this week, there is increasing evidence that shoppers feel pinched when buying consumer goods (CPGs) and are moving from well-known brands to discount labels and store brands. I am.
During the pandemic, consumers stocked up during the first blockade, so the CPG of well-known brands soared and seemed uninterested in price. Inflation then began to rise, with the food index rising to levels not seen since 1981.
Macy’s said Thursday that demand for some of the most popular household items and casual apparel in the pandemic is declining. On the plus side, people are reopening their weddings and promoting the sale of dresses, cosmetics and men’s clothing. Still, Mitchell said retailers were cautious.
“We can see that inflation is much higher than we expected earlier this year, even though consumers are healthy,” he said. “We also recognize that the supply chain disruption has not been resolved.”