CINCINNNATI — Those heady stimulus check-era shopping sprees are long in the past these days.
From 2021 to 2024, many consumers were flush with government checks — including extra child payments — and spent freely on things like new cars, boats, kitchen remodels and backyard decks.
But a growing number of retailers are reporting a slowdown as we head into 2025, with so much economic uncertainly about tariffs and where the economy may be heading.
Kohl's forecasting slowing sales
Kohl's has told analysts it expects sales to drop about 5% this year, which is more than was expected. It is also closing 27 stores around the country this spring, including two Cincinnnati-area stores in Blue Ash and Fairfield.
But it is not just Kohl's feeling the pinch of concerned consumers.
Dick's Sporting Goods also forecast slower sales in recent days, while Target and Best Buy said they may have to raise some prices soon due to tariffs.
Several shoppers we spoke outside Kohl's in Hyde Park Plaza, like Terry Ware, said they are watching their spending a lot more.
"We are cutting back, we are watching everything like food to clothing, everything," he said.
Beverly Brewster said she and her friends have also been tightening their belts.
"I think people are afraid to spend anything right now until the economy straightens out," she said.
Watch shoppers talk about how they are starting to cut back:
Will we see a widespread slowdown?
Compared to its peers like Target and Macy's, Kohl's has been struggling the past couple of years. But economists say what's happening here is an indication shoppers are cutting back amid all the economic uncertainty right now.
Ted Rossman of Bankrate.com said economic uncertainty always leads to spending cutbacks.
But he is not too worried at this point
"The economy is slowing," he said. "But some of this is by design and we don't see a recession in the immediate future."
But for now, some big name retailers are saying they are seeing a softening and hoping it's more of a hiccup than a canary in a coal mine, until consumers learn more about the effects of potential tariffs.
As always, don't waste your money.
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