Student-loan holders will soon have $300 less to spend each month. That could be bad news for Target and Dick’s.
July 12, 2023
Business Insider
The resumption of student loan payments in October is expected to impact consumer spending, with economists anticipating a slowdown as borrowers adjust their budgets. According to Morgan Stanley analysts, retailers with high exposure to student loan holders in discretionary categories, such as Target and Dick’s Sporting Goods, may face greater risks, while retailers like Walmart and dollar stores may be more insulated. Shoppers are likely to prioritize essential purchases like groceries and car maintenance, potentially leading to reduced spending on nonessential items like home goods and clothing.
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