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Surprisingly, some retailers are not at all worried about higher tariffs. Discount stores, operated by Ross, TJX, and Burlington and others may actually benefit in 2025, since they source their off-price merchandise from other retailers. If high prices cause demand to falter at full-price stores and cause an inventory glut, the discounters may win big. https://lnkd.in/gZJRhPR5 #retail #retailnews #ecommerce #tariffs. #discountretailers

Among the many advantages that stores like TJX, Ross and Burlington have over mainstream retail companies: some protection from protectionism. The sourcing model - The nature of off-price retailers’ merchandise pipelines — where much of their assortment is obtained from retailers and brands offloading excess inventory — serves as a cushion against tariffs. In fact, this possibly gives them an advantage, according to analysts and the companies themselves. Price competition - Any time mainstream retailers raise prices, for any reason, they sharpen an edge that off-pricers already have over them. “Off-price is focused on maintaining a value gap to full-price retailers,” Bank of America’s Hutchinson and Nuñez wrote. “If full-price raises prices to combat tariffs and customers accept the increase, this would raise the ceiling for pricing at off-price retailers.” The TJX Companies, Inc. Ross Stores, Inc. Burlington Stores, Inc. Coat #Retail #offprice   GAP stress continuous improvement - https://lnkd.in/gS_QrNHz

Should Inventories Be Pulled Ahead Over Tariff Threats? Costco Wholesale is among retailers and vendors already accelerating inventory arrivals as a short-term solution to minimize exposure to President-elect Donald Trump’s promised tariffs. What lessons should have been learned on such a move from past trade wars? Read the discussion and share your comments below: https://lnkd.in/e4WwJtAa Shannon Flanagan "Trump has an upward battle to fulfill this campaign promise. The impact to our economy is too significant. Retailers should be surgical about what and when they choose to move forward and not have a knee jerk reaction." Gail Rodwell-Simon -- Retail • Strategy • Transformation "I think that the strategy makes sense if the retailer has the flexibility to manage their cashflow in the short term. This would also make the most sense on evergreen, non-perishable (or non-trendy), replenishment type items." •Shep Hyken "Loading up on inventory is a short term solution that is only delaying what’s coming. It may allow for a slower ramp up in price increases due to the tariffs. And, as the article points out, increasing inventory comes at a cost, which will also be passed on to consumers."

Costco Wholesale CFO, Gary Millerchip, is readying his team for the pending increases to tariffs in 2025, according to this CFO Dive article by Maura Webber Sadovi - what are you doing to brace your business? If you would like to talk in more depth about tariff management - use this link to book a call - https://lnkd.in/eyckAthd - let’s talk! #ValueThroughInsight #CostReduction #cfo

Costco Wholesale has a plan to deal with expected tariffs, despite “a lot of uncertainty around the timing and scope of the changes, ” which make it difficult to predict the impact, CFO Gary Millerchip said Thursday during the company’s fiscal Q1 earnings call. “In general, of course, tariffs raise costs so that’s not something that we see as a positive,” Millerchip said during the call. However, he also noted that any headwinds would similarly affect competitors. #wholesale #tarriffs #earnings https://lnkd.in/gFXqV_Bp

The TJX Companies, Inc. says tariff hikes could create a potential opportunity to acquire excess inventory from other brands at advantageous prices. #supplychain #retail #inventory #tariffs

How is your enterprise preparing for tariff changes?

💥 Businesses almost ALWAYS guess wrong on inventory—and it’s costing them BIG. Discounters like TJX profit off excess goods while others are stuck with markdowns and shrinking margins. Why? Overstock, markdown, repeat. Here’s the better way: ✅ Right-size your inventory. ✅ Partner with agile, on-shore manufacturers. ✅ Use on-demand labor in manufacturing and distribution to stay lean and competitive. With Veryable, you can react to demand in real-time—no more costly markdowns from tariff related overstocks. The winners in today’s market? Businesses that produce and source exactly what’s needed, when it’s needed, locally—staying lean, profitable, and ahead of the curve. 🚨 Stop guessing. Start thriving. #OnDemandLabor #LeanManufacturing #Veryable #InventoryManagement #AgileOperations #StayCompetitive

The #retail industry may be in for a challenging ride as proposed tariffs under Trump’s second administration could bring sweeping cost increases. With universal tariffs of 10-20% on imports and potentially up to 60% on Chinese goods, the stakes are high. While tariffs on goods from Canada and Mexico are also on the table, the ultimate policy shape remains unclear—but it’s certain to be more punitive than the last round. In response to earlier tariffs, retailers diversified supply chains, reducing reliance on China. But this time, the room for maneuvering may be tighter. Unlike the 2018 tariffs, which coincided with a pandemic-induced demand boom in 2020, today’s economic landscape is less forgiving. Inflation-weary consumers are scaling back on discretionary purchases like apparel, while retailers face increasing pressure to discount more aggressively. Not all categories are equally vulnerable. Due to stronger pricing power, essential goods, such as auto parts and home products, may weather the storm better. On the other hand, #apparel #retailers, already grappling with shrinking margins, could see their profits squeezed further. According to the National Retail Federation, the proposed #tariffs could cost U.S. households an extra $362 to $624 annually across categories like apparel, furniture, and appliances. A related concern is that increasing costs would likely decrease #consumer demand. Retailers face a tough choice: pass costs to consumers or absorb them at the expense of margins. Either way, someone foots the bill—shoppers, companies, or their shareholders. The days of easy price hikes may be over. For retailers, navigating this new economic terrain will demand more than just resilience; it will require strategic agility and a clear understanding of their customers’ evolving needs. Macy's Kohl's Amazon Walmart Target Costco Wholesale The Wall Street Journal

“The nature of off-price retailers’ merchandise pipelines — where much of their assortment is obtained from retailers and brands offloading excess inventory — serves as a cushion against tariffs. In fact, this possibly gives them an advantage, according to analysts and the companies themselves.” “”We view off-price as relatively insulated from tariff risk given low direct import exposure,” Bank of America analysts Lorraine Hutchinson and Melanie Nuñez said in a Nov. 14 research note. “Off-price primarily sources product domestically, protecting them from taking on a significant incremental tariff cost directly.”” “Any move by retailers to stock up on inventory to avoid tariffs, for example, could ultimately enhance the off-price merchandise pipeline, as merchandise pile-ups often do. “This is what happened last time,” TJX Companies CEO Ernie Herrman told analysts last month, adding that “when there's chaos out there in the market ... usually, that's an opportunity for us.”” “”That could create actually even additional availability of goods at advantageous prices for us because we can take advantage of that opportunistically,” he said. “And that's as likely a scenario as anything.”” “Any time mainstream retailers raise prices, for any reason, they sharpen an edge that off-pricers already have over them.” “”Off-price is focused on maintaining a value gap to full-price retailers,” Bank of America’s Hutchinson and Nuñez wrote. “If full-price raises prices to combat tariffs and customers accept the increase, this would raise the ceiling for pricing at off-price retailers.”” - Daphne Howland