Consumers are still cautious about spending… so says Terry Lundgren who as CEO of Macy’s has a keen sense of how consumers think. Lundgren says “there are signs of life” of why consumers should be feeling better, noting a strong job market and falling gas prices. But he adds that until consumers have job security and higher paychecks, it will take time for them to feel confident.
For now, most consumers are “very focused on value”, he says. “It doesn’t have to be the lowest price, it has to be a price that’s worthy of the product they’re buying.”
Lundgren also talked with me about the U.S. economy (“sluggish”), higher interest rates (“gradual” hikes starting in the fall), why he’s confident about opening stores overseas despite a weak global economy and what Macy’s is doing to protect against hackers.