| Nordstrom recently lowered its forecast for full-year sales from 6% to 8% down to 5% to 7%. While the retailer did not expect the macroeconomic pressures to negatively impact customer spending back in Q1—due to its affluent customer base—demand began to lessen in late June, particularly at Nordstrom Rack, per CEO Erik Nordstrom.
This could be representative of a larger trend, since many other retailers—including Macy's—are lowering their expectations for H2 2022, as customers shift their discretionary spending toward services, leaving retailers with an abundance of remaining inventory.
While clearing excess inventory will continue to be a challenge for retailers for the remainder of 2022, there could be more promise in store than originally expected. "Nordstrom reported that its total sales rose 12% year-over-year in Q2, which shows that there are still plenty of consumers who are willing and eager to spend," said Zak Stambor, senior analyst at Insider Intelligence. | |
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