Economy

Macy’s and Costco sound a warning about the economy

CNN By Nathaniel Meyersohn,

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Global Economic Collapse

Macy’s, Costco and other big chains say shoppers are pulling back at their stores and changing what they buy. That could be a red flag for the US economy.

Macy’s (M) on Thursday cut its annual profit and sales forecast after customer demand slowed.

“The US consumer, particularly at Macy’s, pulled back more than we anticipated,” Macy’s CEO Jeff Gennette said on an earnings call Thursday. Customers “reallocated” spending to food, essentials and services, he said.