Major retailers are releasing first quarter earnings reports this week, and it looks like Americans are digging discounts. Sales surged at both Walmart (WMT) and TJX’s (TJX) stores, which include TJ Maxx and Marshalls. We might be headed towards a recession, but consumers are spending enough to increase profits by 7% for Walmart and a whopping 20% for TJX.
One place Americans aren’t spending their dough are full-price retailers, and stores like Macy’s (M) and Nordstrom (JWN) are taking a major hit. The retailers are expected to report an approximate 50% decline in profits.
But, one store’s profit loss is another consumer’s gain. Poor sales figures translate to deep discounts, so start looking for sales at department stores, both at the mall and online. Saks Fifth Avenue (SKS) and Ralph Lauren (RL) are both launching price reductions on Thursday, Nordstrom.com has reduced items by at least 33% and Neiman Marcus is running its Last Call online clearance with designer items discounted by as much as 65%. But look to next weekend for the best deals yet, when stores nationwide host Memorial Day sale events to try to cap off the month with strong figures.