Major retailers are struggling with the reality that Americans are collectively saving less money than they did in previous years, according to a report.
As a result of inflation and other economic factors plaguing consumers, department stores are feeling the strain heading into the holiday shopping season.
According to a recent report from the Wall Street Journal, some of the county’s largest retailers are seeing losses both in sales and in their market value.
That directly correlates with how much excess money Americans have in their savings accounts following two years of record-high prices for housing and basic goods.
CNBC cautioned earlier this year that the country’s collective savings were dwindling.
Citing information from the U.S. Bureau of Economic Analysis, the outlet reported February’s annual rate of personal savings sat at 4.6 percent — below the average annual rate of over eight percent.
The environment during much of the COVID pandemic actually worked to help people save more cash.
Millions of Americans received stimulus checks and benefited from moratoriums on rent.
Some households were able to save as much as 30 percent of their collective income, CNBC reported. But the economic environment has shifted after more than a year of