Macy’s warns lack of tourists is hurting sales

STORY: A lack of tourists visiting the U.S. has Macy’s feeling the pain. The retailer said Tuesday (August 22) that customers from overseas now account for less than 2% of its sales. That’s down from as much as 4% before the global health crisis. The news came as Macy’s reported quarterly earnings of $5 billion, down 8% on the same time a year ago. Now it’s just the latest U.S. chain to warn of tourism troubles, with visitor numbers to the U.S. still down on pre-crisis times. The U.S. Travel Association says tourist numbers in June were more than a quarter below 2019 levels. Other data shows travellers are also spending less on goods, and splurging instead on sporting events and concert tickets. Mastercard says spending on restaurants, theme parks and nightclubs surged by almost two-thirds in March – the most recent month for which figures are available. It all leaves Macy’s smarting, after it spent big on flagship locations to lure high-spending visitors. That includes a $235 million investment in its prime Herald Square store in Manhattan. Many rivals face the same headache, however, with luxury behemoth LVMH investing heavily in its flagship Tiffany outlet in New York.