**Consumer Companies from Levi’s to Target Brace for a Hit from Student Loan Repayments**.
The resumption of federal student loan repayments in the United States is casting a shadow over the retail sector, as companies anticipate a potential decline in consumer spending..
**Loan Repayments to Commence After Two-Year Pause**.
After a two-year pause due to the COVID-19 pandemic, federal student loan repayments are set to resume on May 1, 2023. The Congressional Budget Office estimates that approximately 43 million borrowers will be affected, with monthly payments averaging around $400..
**Impact on Consumer Spending**.
The resumption of loan repayments is expected to have a significant impact on consumer spending, particularly in discretionary categories such as clothing, home goods, and entertainment. According to a recent survey by the National Retail Federation, 63% of consumers with student loans said they would have to cut back on spending..
**Apparel and Home Goods Sectors Most Vulnerable**.
Companies in the apparel and home goods sectors are particularly vulnerable to the impact of reduced consumer spending. Levi Strauss & Co., for example, has reported that it expects a 1% to 2% decline in revenue in the second quarter of 2023 as a result of loan repayments..
Target Corporation, a major retailer of apparel, home goods, and other products, has also expressed concerns about the potential impact on sales. The company’s CEO, Brian Cornell, has said that Target is .
