Consumers pulled back on purchases of apparel and electronics in recent months while continuing to spend on groceries and other necessities, according to some of the largest U.S. retailers, the Wall Street Journal reported. Department-store chain Macy’s Inc. yesterday said sales were down 4.6% in the fourth quarter, as people spent less online and in stores. The company doesn’t expect sales to start growing again until 2024, as consumers remain under pressure this year and shift spending away from discretionary items and also away from buying goods to services. Chief Executive Jeff Gennette said he is seeing weakness across all income levels. He said Macy’s is focused on finding ways to grow by adding new categories. It now sells electronics, videogames, food and wine on its online marketplace of third-party sellers and plans to add 2,000 more brands on the marketplace this year. Macy’s profit in the quarter fell 32% from a year earlier to $508 million, but came in better than analysts had expected, largely because the company has been able to reduce excess inventory without having to “chase unprofitable sales,” Mr. Gennette said. He said that the company has benefited from being able to offer more targeted promotions to shoppers.
