Consumer

The Pandemic-Era Spending Binge Is Hitting a Wall. Retailers Are Concerned

  • Shoppers near ‘breaking point,’ stoking worries on economy
  • Analyst sees trend dragging on economy for two or three years
A shopper exits a Target store in the Queens borough of New York.Photographer: Bing Guan/Bloomberg
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The US consumer spending binge that took hold during the pandemic is breaking down.

The discretionary spending slump that started last year is delivering a new blow to big US retailers, according to a slew of earnings reports this week. Home Depot Inc. cut its annual profit forecast, citing a customer pullback. Target Corp. and Walmart Inc. warned that recent sales were at their strongest in February but weakened in March and again in April.