Macy’s, one of the biggest names in American retail, has had a tough week. The company’s shares fell after it slashed its full-year outlook following a revenue miss. While earnings beat expectations, the darkening mood at the company is reflective of a broader trend in the retail sector, where spending is slowing down.

The company’s problems were compounded by a warning from Costco CEO Craig Jelinek, who said that the current economic climate was having an impact on consumer behavior. This was echoed by Dollar General, which plunged on results and outlook, and Target, which received a downgrade.

Macy’s CEO Jeff Gennette tried to put a positive spin on things, saying that the company remained focused on delivering a great shopping experience for its customers. He also pointed to the success of the company’s loyalty program and its investments in digital and physical stores.

But the market remains unforgiving, and Macy’s shares closed down 2.8% on Thursday. There is growing concern that the company is losing ground to online retailers such as Amazon, and that its traditional department store model is becoming outdated.

The challenges facing Macy’s are not unique. Retail spending is slowing across the board, with consumers increasingly turning to e-commerce for their shopping needs. The question now is whether companies like Macy’s can adapt to this new reality, or whether they will be left behind as the retail landscape continues to evolve.