Community Chat

[Mindy D]

Shifts in buying preferences 

Macy's and Costco are saying that shoppers are changing what kind of things they're buying at their stores and are also spending less. Macy's CEO said customers reallocated their spending to food, services and essentials. Same store spending sales were down 8.7% last quarter. Higher end store chain, Bloomingdale's, was down 3.7%. Macy's CEO said the chain was going to increase promotions to move unsold merchandise out. Costco's Richard Galanti said customers were switching from high priced steaks for cheaper chicken and pork. Macy's and Costco are favorites of the middle to higher income demographic and there's a pullback amongst those shoppers. Shoppers from these demographics bought clothes, furniture, electronics during the past three years of the pandemic. They are currently shifting their spending to travel and dining, giving a boost to the leisure and hospitality industry. Airlines bookings are way up. 

Lower income shoppers have less money for discretionary products including clothes and home goods. Dollar General stock fell 20% Thursday. Dollar Tree cut its annual projections last week and said customers are foregoing discretionary products and we're buying necessities.

Some retail companies are not suffering from the shift in spending. Walmart has been doing well with half of its sales stemming from grocery and with wealthier shoppers shopping there in store. Beauty retailers such as Ulta and Elf are doing very well with cosmetics and skincare booming. Customers are willing to splurge  a little on small indulgences such as a lipstick. 

[CelticCrafter]

We eat a lot of chicken in this house.

I don't think we eat beef more than once a month and when we do, it's ground beef for meatballs or burgers.

[hckynutjohn]

@Mindy D 

I know we are spending less at Costco and the reason is pretty easy math. What used to be price B is now price J. According to some, all is going just fine.

hckynut 🇺🇸

[nycalady]

Cosmetics was always a big money maker in major department stores, Ulta & Sephora has cut into some of those sales over the years. This motivated major department stores to start or amp up their loyalty programs.

[granddi]

McDonalds reports a change in customer spending. The typical sale would be 3 items: entree, fries, drink. Now customers are eliminating the fries or the drink and not ordering the cookie. 

[stevieb]

Inflation and the utter failure to address it, or apparently to even try, continue taking a toll. As for me, I don't shop Costco, but I have changed my shopping habits with Macy's. In honesty, though, it's in large part because I'm not seeing the same level of sales, promotions and markdowns I'm used to seeing. Customers are tightening their belts and it appears they are too. With rare exceptions, I shop deals and if I'm not seeing what I consider to be a solid deal, odds are I'm taking a pass. 

[Mindy D]

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@stevieb wrote:

Inflation and the utter failure to address it, or apparently to even try, continue taking a toll. As for me, I don't shop Costco, but I have changed my shopping habits with Macy's. In honestly, though, it's in large part because I'm not seeing the same level of sales, promotions and markdowns I'm used to seeing. Customers are tightening their belts and it appears they are too. With rare exceptions, I shop deals and if I'm not seeing what I consider to be a solid deal, odds are I'm taking a pass. 

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@stevieb @You'll be seeing those sales now as they try to blow out all the unsold stock. 

[RollTide2008]

One of the reasons my spending has shifted is I spent a lot of time during Covid decluttering what I had. I’m much more intentional about what I buy so I don’t have that problem again.

[We rescue cats]

I'm becoming more cost conscious than I was a year ago, I was one of those people that seldom looked at a price tag (Unless I was in a highend store). My husband always told me that if I ended up on Price is Right I would come in dead last . . . We are not wealthy by any means but I worked really hard and very long hours so I bought what I wanted, within reason. We were just at a Red Lobster for dinner and I have to say, I was shocked at the prices! I considered them mid-price range until tonight.

[Effie54]

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@hckynutjohn wrote:

@Mindy D 

I know we are spending less at Costco and the reason is pretty easy math. What used to be price B is now price J. According to some, all is going just fine.

hckynut 🇺🇸

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Exactly! And they say crime is down too....not!