The Washington Post reported Saturday, citing reports from big-name retailers, that there won't be much growth in the economy ahead.
Companies such as Target, Best Buy, and Abercrombie & Fitch are forecasting weak sales for 2025, citing inflation, consumer fatigue, and the potential impact of President Donald Trump's tariffs on imported goods, the Post reported.
Best Buy CEO Corie Barry warned during a phone call with analysts that price increases are "highly likely" due to rising import costs.
"This is bigger than just a discussion about tariffs," Barry told the analysts during the call. "It's just kind of a volatile environment for the consumer."
Target announced it would no longer provide quarterly profit forecasts because of expected volatility. Macy's, meanwhile, projected a slight decline in comparable store sales as it struggles with long-term restructuring efforts.
According to John Mercer, the head of global research at Coresight, a retail data firm, discretionary spending in middle markets for goods such as apparel, home goods, and accessories are among the hardest hit by the current economic climate. Even cheaper brands like Ross and Burlington, which typically perform well in economic downturns, have tempered their expectations for growth.
"The margin for error in the event of a downturn in employment and the economy is very, very little," said Brandon Svec, the head of U.S. retail analytics at CoStar Group. "The upside appears to be relatively minimal, as well, given how little consumers have left in the tank."