The demise of the American shopper has been overblown. New quarterly earnings reports and other data show that . They’re just doing it a lot more cautiously — and with a preference for big-box retailers.
Inflation , to the point that next month. , driven by the Fed keeping overall rates higher for longer, continue to deter spending on big-ticket . These conditions are affecting brick-and-mortar retailers in different ways across different industry sectors.
A slew of quarterly earnings reports in recent weeks show that the retail market is somewhat polarized, with clear and in a pitched . “Wallets right now are tight,” Greg Zakowicz, a senior e-commerce expert at the marketing platform Omnisend, said in an interview. “Consumers are nervous and spending will continue to be more intentional through the end of the year.
” That cautious spending approach underscores why Walmart CEO Doug McMillion attributes the retail giant’s recent success to its focus on value and convenience. Those priorities have helped , with particular growth among wealthier consumers. It’s partly why McMillion said during the company’s second-quarter earnings call this month that the retailer is across different categories.
“Customers from all income levels are looking for value and we have it,” McMillon said. is a strategy that has also boosted Target . It worked because Target “had the right inventory and the right products,” said Mickey Chadha, a vice president at Moody’s.
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