NEW YORK — From affluent shoppers at Saks to bargain-hunters at Target, from Home Depot to office supplier Staples, consumers are pulling back, and that’s hurting retailers and raising more concerns about how they’ll do the rest of the year.
The latest round of second-quarter reports shows more signs of financial stress on shoppers as Target’s customers stick to necessities and have trouble making credit-card payments. Saks says it’s seeing its high-end designer consumer cut back, whereas previously it was only the aspirational customers who were retrenching.
And while falling gas prices in recent weeks should provide some relief to consumers, economists say that won’t be enough to offset all the other economic problems out there, from a housing slump and a weakening job market to soaring food prices and tighter credit.
“It’s a small positive, but you still have all the other negatives,” said Carl Steidtmann, chief economist at Deloitte Research.
He predicted that retailers are facing “tough” back-to-school and holiday seasons.
Investors sent retail stocks down along with the broader market. Home Depot’s shares fell nearly 4 percent, while Staples’ dropped more than 4 percent and Saks’ stock tumbled more than 8 percent. Industry leader Wal-Mart reported a 7.6 percent drop in profit as its customers focused on necessities.
