Several major U.S. department stores, including Macy’s and Nordstrom, are witnessing an increase in credit card delinquencies, which poses a risk to their revenues as consumers scale back discretionary spending before the critical holiday shopping season. Macy’s reported a decline of $84 million in credit card revenues for the second quarter due to rising delinquencies, while Nordstrom saw a 10% rise in credit card revenues in the first half of the year but warned of higher credit losses ahead. The rise in delinquencies, particularly among consumers in their 40s and 50s, could indicate growing financial pressure on certain segments of the population, leading to higher bad debt and write-offs for department stores.

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