Retailers struggle to adapt to changing spending habits

Business

(NewsNation) — Rising inflation is impacting every aspect of Americans’ lives, including what consumers choose to buy, which has caused some major retailers to worry about whether consumers will spend money on experiences rather than retail goods.

Macy’s says that between inflation pinching Americans’ wallets and pent-up pandemic demand, consumers could be faced with the choice of spending money on a new purse or a weekend trip to the beach. This makes stocking their stores for the spring and summer seasons harder.

Consumers are spending 59% more on average at gas and convenience stores than they were a year earlier.

Macy’s says it recently tracked less demand for goods they sell, like home goods and casual apparel, which matters because the retailer doesn’t want to order too many swimsuits or kitchen gadgets if that is what people aren’t spending money on.

It also makes it harder to stock their store shelves with products customers actually want or will spend their limited cash on.

Another major retailer, Nordstrom, said it’s less concerned about the unpredictability issues related to inflation because its sales are generally more tied to the health of the stock market, which has been strong recently.

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