Consumer sentiment took a hit in August as concerns about inflation and a potential recession loomed. Morningstar's David Swartz says consumers are pulling back on discretionary spending due to economic uncertainty, while Conference Board's Dana Peterson notes a rise in inflation expectations in July. However, not all retailers are created equal - Swartz sees value in undervalued department store stocks like Macy's (M) and Kohl's (KSS), citing their significant real estate holdings.