Macy’s executives have warned of a spike in customers failing to make credit card payments thanks to unprecedented pressures on household finances.
The department store has seen its credit card revenue plunge by 36 percent this year due to the rise in delinquencies.
Bosses said they had expected to see a rise in delinquencies post-pandemic but that the trend had emerged ‘faster than planned.’
It comes after figures from the Fed showed America’s credit card debt had swelled to $1 trillion for the first time in history.
In an earnings call, Macy’s chief operating officer and chief finance officer Adrian Mitchell said: ‘The speed at which the increase occurred for us and the broader credit card industry was faster planned.’