Macy’s faces declining customer behavior and sales during the critical holiday season, with net sales dropping by 0.6% and net income decreasing by 60% in the third quarter of 2025. Foot traffic also declined by almost 11%, reflecting weakening consumer demand following price increases and tariff concerns.

Recent data shows that 87% of consumers are worried about tariffs impacting their finances, with 82% planning to change shopping habits, and 77% concerned about a potential recession in 2026. Consumers are cutting back on spending, searching for discounts, and switching to lower-priced retailers due to economic uncertainties.

Macy’s Chief Operating Officer mentioned proactive mitigation efforts like cost negotiations and vendor discounting in response to tariffs. Despite economic uncertainty, the company’s core customer base remained resilient. Macy’s is focusing on engaging consumers through its Bold New Chapter strategy, elevating product assortment, and positioning well for the holiday season.

Americans plan to reduce holiday spending due to inflation and tariff concerns, with 70% feeling a negative impact on their finances. Thrivent’s survey shows 68% believe tariffs will increase holiday expenses, leading to cutbacks on dining out, gifts, and travel. Financial pressures are reshaping holiday traditions and spending habits.

Read more at Yahoo Finance: Macy’s sees shift in customer behavior ahead of holidays