This Week: Which Retailers Win When Customers Trade Down?

Last week, Walmart reported a surprisingly strong jump in revenue, which the retail giant’s leaders interpreted as a sign of the American consumer’s resilience. It could just as easily be the opposite: an indication that stretched shoppers are looking to trade down.

Macy’s is intimately familiar with the trading down phenomenon, mostly as a victim. For years, customers have been abandoning the department store operator for big-box…