home depot’s recent announcement that it expects fiscal 2023 samestore sales to decline by as much as 5 its first retreat since 2009 may be a harbinger of things to come for the bricksandmortar retail universe as consumers shift their discretionary spending from goods to experiences to make matters even dicier the federal reserve’s most recent report suggests that last year’s inventory glut remains a stiff headwind hovering just below its peak reading earlier this year that’s the sober reality behind the hopefulsounding report from the commerce department that after a twomonth decline retail sales rose slightly in april 04 suggesting a turnaround might be in the works behind the headlines “shoppers boosted retail sales” a very different picture emerges for starters yearoveryear retail sales growth has steadily declined since last july up 16 this april versus 82 a year ago more importantly the topline retail sales figure lumps bricksandmortar spending with nonstore retail but since november spending on goods fell four out of the last six months when you break the details down further you discover that nonstore retail eg ecommerce rose 8 health and beauty spending was up 79 and food and beverage services spiked 94 consumers are buying less stuff and spending more on experiences this trend would explain why target’s sales for the quarter ended april 29 were flat compared to last year target reported that comparablestore sales in beauty products grew by about 15 while sales declined in apparel home and hardlines accounting for more than half of the company’s sales while companies like walmart and target have reported progress in winnowing their inventory backlogs the overall picture is daunting if these shopping trends continue so far there are no signs that destocking by american retailers is over and restocking has begun according to a report in the wall street journal shipping and logistics providers say inbound volumes of containers from asia into west coast ports are down by almost a quarter from last year the change in consumers’ spending habits may be the final nail in the coffin for retailers struggling but got a stay of execution during the pandemic from the surge in consumer spending and lowinterest rates the list of retail bankruptcies has been growing bed bath and beyond david’s bridal christmas tree shops discounter tuesday morning tupperware brands and party city as the pandemic fades and consumers pull back expect to see more store closings and liquidations