Walmart reported only a .5% rise in sales in January. It was interesting to see what the company said about the Gift Cards. It seems consumers are using gift cards for food.
The firm said that despite continued grocery and health-and-wellness strength, sales were hurt by bad weather, especially in the Midwest, while gift-card redemptions were also below expectations. Wal-Mart noted customers seem to be holding on to them longer and using them more often for food and other consumables rather than discretionary items.
Target reported same-store sales are down 1.1%. Macy's reported same-store sales down 7.1% in January. Macy's is also cutting 2,550 jobs.
Looks like consumers are feeling the pinch.
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