CINCINNATI — Those exhilarating shopping sprees fueled by stimulus checks are now a distant memory.
Between 2021 and 2024, consumers enjoyed a boost from government payments, including supplemental child benefits, leading to extravagant spending on items like new cars, boats, kitchen renovations, and outdoor decks.
However, as we approach 2025, an increasing number of retailers are reporting a slowdown, amidst rising economic uncertainty regarding tariffs and the overall direction of the economy.
Kohl’s projects declining sales
Kohl’s has informed analysts that it anticipates a 5% decrease in sales this year, which surpasses previous expectations. The company will also close 27 stores nationwide this spring, including two locations in the Cincinnati area, in Blue Ash and Fairfield.
It’s not only Kohl’s experiencing the impact of cautious consumers.
Dick’s Sporting Goods has recently predicted slower sales, while Target and Best Buy have indicated that they may need to increase prices soon due to tariff implications.
Several shoppers we talked to outside Kohl’s in Hyde Park Plaza, like Terry Ware, noted that they are monitoring their spending closely.
“We’re scaling back and being mindful of every expense, from food to clothing, everything,” he stated.
Beverly Brewster mentioned that she and her friends are also being more frugal.
“I think people are hesitant to spend anything right now until the economy stabilizes,” she remarked.
Watch shoppers discuss their proactive spending cuts:
Kohl’s forecasts shopper slowdown: is it happening everywhere?
Are we looking at a widespread slowdown?
Relative to competitors such as Target and Macy’s, Kohl’s has faced difficulties over the past couple of years. However, economists suggest that the current trends signal that consumers are tightening their wallets amid prevailing economic doubts.
Ted Rossman from Bankrate.com pointed out that economic uncertainty usually leads consumers to cut back on spending.
Nevertheless, he isn’t overly concerned at this moment.
“The economy is slowing,” he observed. “But some of this is intentional, and we don’t foresee a recession in the near future.”
Currently, some prominent retailers are reporting a decline and are hopeful it’s merely a temporary setback rather than an ominous sign, awaiting clarity on potential tariffs’ impact.
As always, be mindful of your spending.
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