Eurodollar University Macy’s Just Issued a Very Grim Warning About Consumer Behavior
Jan 21, 2026
Macy’s struggles amid a weak economy lead to store closures and thousands of job cuts. The retailer is shifting focus to wealthy customers as spending from lower- and middle-income shoppers dwindles. Delta Airlines highlights growing demand only in premium services, reflecting similar affordability issues. The podcast explores connections between flat wage growth, rising credit risks, and recent retail job losses during the festive season. It presents a concerning view of a two-speed economy shaped by inequality and inflation.
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Premium Spending Masks Broad Weakness
- Macy's and Delta both report demand concentrated in the wealthy segment while lower and middle incomes pull back.
- This divergence reveals a two-speed economy where premium consumption masks broader weakness.
Store Closures Signal Deeper Consumer Trouble
- Retailers cut fulfillment centers and stores because lower-income customers stopped spending.
- Macy's actions are symptomatic of a wider consumer and labor shortfall, not isolated mismanagement.
Holiday Hiring Wasn't Real — Retail Job Losses
- BLS establishment survey shows retail lost 66,000 jobs in Q4 despite holiday season optimism.
- The jobs data indicate employers were shrinking staff, contradicting narratives of a strong consumer holiday.