As U.S. consumers navigate an economy still rocked by high inflation, they are guided by tight wallets and cheaper goods, a trend that’s hitting department store chains like Macy’s harder than discount retailers like Target and T.J. Maxx.

On Wednesday, Macy’s, the largest department store chain in the United States, reported falling sales in the second quarter, while Target and T.J. Maxx found lower prices were luring consumers. But all three retailers are headed into the final months of the year marked by uncertainty over the upcoming U.S. presidential election, which has cast a shadow over the economy.

The discrepancy between struggling department stores and thriving budget retailers underscores a consumer trend: Shoppers are “increasingly careful and discerning,” despite cooling inflation, said Quincy Krosby, chief global strategist at LPL Financial.

Earnings reports from major retailers are one data point on Wall Street’s radar, as investors anticipate the minutes from the Federal Reserve’s July policy meeting, set to be released on Wednesday, which will offer insights into possible interest rate cuts.

Macy’s, which also owns Bloomingdale’s and Bluemercury, said overall comparable sales, a metric for stores open more than a year, fell 4 percent in the second quarter. The retailer added that it was expecting its net sales for the year to be down as much as 2.2 percent, to $22.4. billion. The company expects comparable sales also to be lower for the full year.

“The context that we are operating under is a consumer that’s really oriented on value,” Adrian Mitchell, Macy’s chief financial officer, said on a call with analysts.