Macy’s has raised its sales forecasts for the remainder of the financial year, indicating that consumers are still willing to spend despite concerns about a potential downturn. The largest department store chain in the United States now expects full-year sales to be between $21.5 billion and $21.6 billion, an increase from earlier predictions. Sales growth during the quarter ending on November 1 reached approximately 3%, marking the strongest performance in over three years.
The company’s latest earnings statement suggests a shift in consumer behavior, with shoppers becoming increasingly selective in their purchases. According to the report, “the consumer is more choiceful in the fourth quarter of 2025.” Despite this caution, consumers demonstrated their willingness to spend, particularly during the recent Black Friday shopping event, where online spending reached a record $11.8 billion, according to Adobe Analytics. This surge was aided by significant discounting from various retailers.
Tony Spring, Macy’s Chief Executive Officer, highlighted the company’s strategy of emphasizing price cuts and offering compelling new merchandise. He stated, “As we enter the holiday season, we are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value.” This approach aims to attract a diverse consumer base, from bargain hunters to those seeking premium products, particularly at its upscale Bloomingdale’s chain, which also reported strong sales.
Since taking the helm at Macy’s in 2024, Spring has focused on enhancing the shopping experience by increasing staffing and advertising in key locations as part of a larger turnaround strategy. This comes in the context of a challenging economic environment, where consumer confidence has dipped due to rising costs. Some surveys suggest that people plan to spend up to 10% less this holiday season compared to last year.
Despite these concerns, the National Retail Federation noted that a record 203 million people shopped during the Thanksgiving Day, Black Friday, and Cyber Monday weekend, an increase from 197 million in the previous year. This data underscores a resilience among consumers, even as they navigate a landscape of financial uncertainty.
In a related development, Dollar Tree reported a 9.4% increase in sales during its most recent quarter, benefiting from consumers who are opting for budget-friendly options. This trend highlights a broader shift in spending patterns, where consumers are increasingly looking for value amid rising expenses.
As the holiday season approaches, Macy’s and other retailers will be closely monitoring consumer behavior to adapt to changing preferences and economic conditions. The ability to balance attractive pricing with quality merchandise will be crucial for maintaining momentum in sales during this critical period.
