Spending at department stores and discount chains has seen an upward trend from U.S. shoppers, despite economic conditions, The Wall Street Journal wrote Thursday (May 26).
This could indicate some sort of resilience even through the inflationary pressures that have been imposed on consumers and hurt retail chains in recent months.
Among those who saw the strong sales were Macy’s and Dollar Tree, which came as shoppers had bought more clothes in anticipation of returning to public life.
Shoppers have turned to discount chains to buy basic necessities, which has come as costs have risen due to various economic pressures.
This affected Dollar General, which saw sales stagnate but raised its outlook for the full year, with the observation that cash-strapped customers are turning more to its stores.
It comes as other retail giants like Walmart and Target haven’t fared as well, with both posting big drops in profits. The reasons were things like supply chain blockages and labor and inflation costs, the WSJ wrote.
Gap also joined that chorus, saying the results came from multiple “macroeconomic conditions” and that size and assortment imbalances affected the company’s Old Navy chain.
Macy’s said it also saw those kinds of pressures — and in some cases said the strengths were likely to show up in their results.
See also: Macy’s embraces returning customers to physical stores
Macy’s reportedly said it was happy to see customers returning to physical stores, PYMNTS wrote, especially in the United States and non-Asian countries.
The company reported weaker-than-expected digital sales in the first quarter of this year, and executives were happy to see the highest level of active customers in years, at 44.4 million.
Chairman and CEO Jeff Gennette said the quarter “presented a unique combination of challenges as well as a very dynamic environment,” during the quarterly call Thursday, May 26. “We stayed focused on the customer – what and where they wanted to shop.”