Retailers see continued signs of a consumer slowdown

Kelsey Barberio brings you the biggest news of the day, including why Macy’s isn’t optimistic in 2025.

Transcript

00:00Add Macy's to the growing list of retailers with a not-so-optimistic outlook in 2025.

00:05The struggling retailer says it expects sales to decline again this year.

00:09Macy's predicts roughly $21 billion in sales for its current fiscal year, about a billion

00:14dollars less than last year.

00:16CEO Tony Spring claims the economic uncertainty in the U.S. is affecting all shoppers, saying

00:22on Macy's most recent earnings call,

00:24I think the affluent customer that's shopping Macy's is just as uncertain and as confused

00:29and concerned by what's transpiring.

00:31The latest Personal Consumption Expenditures Index saw prices jump 2.5% from a year ago.

00:36The worrisome reading, however, was real consumer spending, which dropped a larger-than-expected

00:410.5%.

00:42That's the biggest decline in almost four years.

00:45That number suggests the economy could be in the midst of a consumer-driven slowdown.

00:49Despite company-owned brands Bloomingdale's and Blue Mercury posting small gains, sales

00:53at Macy's dropped 5%.

00:55Then in January, the company announced it would be closing 66 stores, with another 84

01:00slated to close by the end of 2026.

01:02That'll do it for your daily briefing.

01:04From New York City, I'm Kelsea Barbera with The Street.