Zero Hedge | May 17, 2023
Analysts and traders have been questioning whether the robust consumer spending trend observed early in the season would sustain, or if a slowdown in spending was imminent. Their answer arrived over the past few days as Home Depot cut its forecast due to sliding sales as the home improvement boom appears to be waning. Additionally, Target, one of the biggest retailers, voiced concerns about “softening sales trends.”
Comparable sales from brick-and-mortar stores and digital channels operating for at least 12 months were flat for the three-month period that ended April 29 compared with the same quarter last year. That is lower than the previous quarter’s 0.7% increase.
Target executives told reporters that consumers are dialing back discretionary purchases and switching to staple goods as price rises and higher interest rates crimp household budgets. They said food and beverage, household essentials, and cosmetic sales were strong.
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