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Macy's has indicated that it expects to generate $21 billion in sales for the coming year, which is down $1 billion from previous projections. This decline reflects not only a reduction in sales volume but also highlights the effects of inflation on consumer purchasing power. Inflation raises the overall cost of goods, effectively diminishing the value of money that consumers have for spending.
Macy's challenges are echoed in the broader retail landscape. For example, they recently reported a 5% drop in sales, leading to the decision to close 66 stores this year and another 84 by 2026. Such measures represent a stark response to a shifting economic reality that is starting to weigh heavily on consumers' finances.