US Department Stores See Higher Credit Delinquencies Amid Strained Spending
August 28, 2023
Several major U.S. department stores, including Macy’s and Nordstrom, are witnessing an increase in credit card delinquencies, which poses a risk to their revenues as consumers scale back discretionary spending before the critical holiday shopping season. Macy’s reported a decline of $84 million in credit card revenues for the second quarter due to rising delinquencies, while Nordstrom saw a 10% rise in credit card revenues in the first half of the year but warned of higher credit losses ahead. The rise in delinquencies, particularly among consumers in their 40s and 50s, could indicate growing financial pressure on certain segments of the population, leading to higher bad debt and write-offs for department stores.
Recent News
Peloton CEO Steps Down and Layoffs Begin
Peloton, the popular fitness technology company, has announced significant changes in its leadership and organizational structure.
California Restaurants Must Start Eliminating Special Surcharges
Starting July 1, California is changing the game for restaurant bills.
T-Mobile Now Owns Ryan Reynolds-Backed Mint Mobile
The deal is worth upwards of $1.35 billion.
Chipotle Is Giving Away Over $1 Million in Burritos to Healthcare Workers
In acknowledgment of the tireless contributions of healthcare workers, Chipotle Mexican Grill has announced a notable gesture of appreciation: the distribution of 100,000 free burrito e-cards.