Americans are worn down by high inflation and interest rates. Companies that offer bargains and staples are reaping the rewards.
Just ask Ross Stores: America’s largest off-price retailer reported earnings and revenue that beat analysts’ forecasts last week. Company executives said they’re planning on opening about 90 new stores this year. In contrast, high-end retailers such as Burberry have been sounding the alarm of a broad slowdown in luxury spending.
“You’re seeing a pullback from consumers on the more discretionary-spending side of things,” Clayton Allison, portfolio manager at Prime Capital Investment Advisors, told CNN.
Allison said US consumers’ more cautious stance will be a boon for retailers that sell essentials such as groceries.
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