Macy’s sees holiday shopping red flags

Core Insights - Macy's is experiencing a decline in customer behavior during the critical holiday season, with net sales decreasing by 0.6% year-over-year in Q3 [1] - The company's net sales at its namesake stores fell by 2.3%, and net income dropped to $11 billion, a 60% decrease compared to the same quarter last year [2] - Foot traffic at Macy's stores declined by almost 11% year-over-year, indicating weakening consumer demand [2] Consumer Behavior and Economic Impact - The decline in customer behavior follows price increases implemented earlier this year, coinciding with tariff policies that have made consumers more cautious about spending [3] - Approximately 87% of consumers are concerned about tariffs affecting their finances, with 63% worried about rising prices of everyday goods [8] - 82% of consumers plan to alter their shopping habits due to tariffs, including cutting back on nonessential spending and seeking discounts [8] Company Strategy - Macy's COO stated that the impact of tariffs has been less severe than anticipated due to proactive measures like cost negotiations and vendor discounting [6] - The company plans to continue these efforts to mitigate tariff impacts and monitor ongoing tariff situations [7]