Macy’s and Costco report slower sales

COLUMBIA, S.C. (CNN)—Macy’s and Costco say shoppers are changing what they buy and that could be a warning sign for the U.S. economy.

Today Macy’s cut its forecast for annual profit and sales after customer demand slowed in March. Same-store sales at Macy’s sank 8.7% last quarter.

Costco is also noting a shift in demand. The big box chain reports some customers were switching from pricier steaks and beef to cheaper meats like pork and chicken.

Macy’s and Costco appeal to middle and higher-income shoppers, and their results show a pullback in that demographic, but data from Dollar General shows lower-income shoppers are also spending less on discretionary goods.