Slowdown in Retail Spending Reflected in Macy’s Revised Forecast

Retailers have finally worked through the piles of excess inventory that tripped them up over the past year, but now U.S. consumers appear to be undertaking their own destocking efforts, says The Wall Street Journal.

Demand for apparel and accessories is declining, and Macy’s cut back its full-year outlook on sales and profits June 1, signaling that department stores and outlets focused on discretionary goods face an uphill climb with consumers.

The troubles on the demand side come amid growing signs that the inventory overhang from last year is clearing. Macy’s inventory was down 7% from the prior year, in line with its sales decline. Nordstrom ended Q1 2023 with inventory down 8% from last year, although its sales fell 11.6%. 

Macy’s executives say they’re now focused on “inventory discipline,” signaling the chain aims to remain nimble and adjust to changing consumer behavior.

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• Source: https://www.supplychainbrain.com/articles/37387-slowdown-in-retail-spending-reflected-in-macys-revised-forecast