It’s something economists have expected for months: Consumers are becoming skittish as rising prices and high interest rates put pressure on their wallets, The Washington Post reported. New government data and earnings reports indicate that more Americans are being strategic — hunting for deals, settling for more affordable options and focusing on essentials. “A consumer slowdown is underway,” said Neil Saunders, managing director of analytics company GlobalData. “Growth is a lot more sluggish than it has been for quite some time and … retailers are reporting quite stark changes in consumer behavior.” Executives at some of the country’s top retailers said this week that even higher-income consumers are reacting to persistent inflation, scaling back on big-ticket discretionary items and general merchandise. One of the few winners this week was Walmart, which demonstrated it has scooped up and held on to new and younger shoppers looking for value. TJX, the parent company of TJ Maxx and Marshall’s, has also benefited from the shift. Same-store sales for the two brands grew 5 percent year-over-year, the company reported. These trends were reflected in a report by the Census Bureau this week showing that retail sales inched up 0.4 percent in April from the previous month — half of what analysts expected. Spending on food, beverages, health and personal care was essentially flat once inflation — which rose 4.9 percent in April year-on-year — is factored in, Saunders said. (Subscription required.)
