New York CNN —
Macy’s, Costco and other big chains say shoppers are pulling back at their stores and changing what they buy. That could be a red flag for the US economy.
Macy’s (M) on Thursday cut its annual profit and sales forecast after customer demand slowed in March.
“We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories,” Macy’s CEO Jeff Gennette said in a statement.
Macy’s stock dropped around 6% during pre-market trading Thursday.
The company was the latest retailer to note shifts in customer demand.
Costco (COST) finance chief Richard Galanti said last week that that some customers were switching from pricier steaks and beef for cheaper meats like pork and chicken. This is a trend that has been common in previous recessions, he said.
This is a breaking news story and will be updated.