A lot of Americans are still spending their money only on socks and other essentials, highlighting the disparity between younger and poorer consumers and those who are benefiting from the economic recovery.
Major retailers, like Walmart and Kohl’s, that cater to budget-conscious customers with lower incomes cited sluggish sales this week as they decreased their annual forecasts. Macy’s, with a slightly higher-income clientele, did not meet analysts’ expectations for the first time in 25 quarters.
But even upper-income consumers do not seem to be spending as freely as some hoped. While Nordstrom’s, which reaches a middle- to luxury-end market, reported a higher-than-expected quarterly profit Thursday, it too said sales “remained softer than anticipated” and lowered its forecast. Full story for BostonGlobe.com subscribers.