Retail giants Macy's and Costco warn of economic downturn.

Macy's has cut its full-year sales guidance due to weakened consumer demand, reporting a 7% decline in net sales for Q1 2022 compared to the same period last year. The retailer's revised guidance is now between $22.8bn and $23.2bn, down from $23.7bn to $24.2bn. Macy's CEO Jeff Gennette said the company had planned for a challenging economic environment but demand trends weakened further in discretionary categories. Other retailers, including Target and Nordstrom, have also been hit hard by the pullback in retail spending, while Walmart and other discounters are seeing growth.