Macy’sThe American consumer remains healthy, according to the department store chain. The department store chain stated that rising oil prices will result in higher gas prices and larger grocery bills. However, it expects certain consumers to be more affected than others.

“From a consumer demand standpoint, we still have a healthy consumer,” said Macy’s Chief Financial Officer Adrian Mitchell, during a Wednesday presentation at the UBS Global Consumer & Retail Conference.

He pointed out that American families had benefited greatly from the government’s stimulus payments at this time last fiscal year. However, savings rates are still higher than they were before the pandemic.

Mitchell claims that consumers are also feeling more pressure. With the increasing geopolitical instability in Russia and Ukraine, inflation is high. “We are seeing oil prices rise, which will only increase the costs around essential goods,” said he.

Mitchell stated that Macy’s will see lower income families spend more on essential items such as groceries than other customers. Mitchell stated that the company is currently examining how it can communicate more value to these customers than to a luxury client who has greater spending power.

While value will matter in the end, it can also be used to refer to a different tier. [of income]”Yes,” he stated at UBS’s conference.

This week saw oil prices rise, with crude from the United States hitting a record high a 13-year high of $130 per barrel, but have since eased in Wednesday morning trading. Consumer price index January measures costs for many everyday consumer goods. rose 7.5% from the prior year. This was the highest level since 1982.

In late February, Macy’s offered a better-than-expected financial outlook in 2022Despite macroeconomic headwinds such as inflation and supply chain problems, it was still possible to achieve this feat.

Macy’s stock has risen by 57% in the last 12 months.