Why Americans are spending less on clothing and electronics this year

Several big retailers report consumers are changing the way they shop amid high inflation. Retailers like Target, Best Buy and Macy’s say Americans are spending less on discretionary goods like clothing and electronics.

Instead, consumers are redirecting money toward groceries and household basics.

The slowdown on discretionary spending could prompt discounts on those items as stores look to lower their inventory.

Several retailers say they’re predicting a decline in sales this year, while discount retailers like T.J. Maxx, Marshalls and Aldi expect their sales to grow in 2023.