Consumers are feeling the bite of inflation and other financial pressures.
Lower-income consumers are pulling back on spending even amid the recent decline in gas prices. This is happening while retailers such as Macy’s, Kohl’s, Nordstrom, and Victoria’s Secret have high inventory levels.
Amid heightened uncertainty and stabilizing supply chains, we could see a very promotional fall season for retailers as they scale down inventory levels ahead of the end-of-year holiday season.
Weddings, special events, travel, and weekend gatherings are driving strong demand for high-end apparel and jewelry, but this trend may well ease by year end.