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"As tariffs threaten to raise prices, a potentially existential question is facing retailers: How much inventory is too much or too little in such an uncertain environment—and is it worth squirreling away a little extra if higher costs are on the horizon?" *
That’s the question posed by Alex Vuocolo in the May 21, 2025 Retail Brew.
That vexing issue of “how much inventory is too much?” is not new to retailers, of course. But the volatility of the tariffs being imposed by the current administration are a significant complication.
Walmart's announcement that its prices are increasing due to the tariffs is welcomed by some retailers as an "everybody is doing it" cover story for raising their own prices. They can recommend that their staff just dismissively say, "Oh, it's because of the tariffs, you know," whenever customers challenge them about the price of an item.
That approach, commiserating with the customer, is likely to become widespread. After all, we all are feeling the impacts of higher prices, from the gas station to the grocery store.
But here's another idea for you to consider, an alternative to the victim mentality of the-tariffs-made-us-do-it. It all comes back to controlling the controllables in your business.
"They say there’s nothing quite like retail therapy, but what happens when online shopping just feels like it’s lost its spark?” asks Jeena Sharma in Retail Brew.
“Well, more than 3 in 4 consumers say that while e-commerce is ‘functional,’ it’s just not fun anymore, a new study by Criteo found."
According to "The Spark Of Discovery" report by global marketing and media company Criteo, who surveyed 6,000 consumers in six different countries, shoppers describe online shopping...
as a chore, 29%
as lonely, 79%
as overwhelming, 78%.
Ouch!
When do shoppers prefer ecommerce? No surprises there either:
Save time, 48%
Easier price comparison, 45%
Avoid crowds, 38%
Better discounts, 38%
Broader range of products, 34%
The report went on at some length to propose how ecommerce businesses could imitate the best practices of specialty retailers.
We've often explained that The ROI is like the local public library. It’s brimming with information and resources. But, there is no one starting point, no set pathway through The ROI. Just like you have no one issue.
Given that usage pattern, we decided to essentially make it official. We've now departmentalized The ROI much like a library.
Why did we do that? To make it easier and much faster for you to get whatever you need.
Our library has nine specialized Retail Resource Centers awaiting you at RetailOwner.com.
We’re familiar with a middle-aged woman who recently applied for a sales job at a local “dress shop.” She’s a very pleasant person with an above-average family lifestyle. She sure didn’t need the income.
Another woman we know prides herself on going to her favorite supermarket almost every day. She wouldn’t have to; she wants to. Why?
Maybe you don’t agree with us, but we think that we’re all going through a period of uncertainty, worry, sadness and concerns that seem to put a damper on much of normal pleasantries.
This gloom is getting old and those who can are seeking places where they’ll find smiles. And independent retailers specialize in smiles! 😊
On April 5, the National Retail Federation, “the world’s largest retail trade association,” felt compelled to explain “Five Things To Know About Tariffs.”
Among the first things they explain is who actually pays the tariff.
“Tariffs are a tax on goods imported into the United States and are paid for by the U.S. importer.”
“When tariffs are enacted, retailers are forced to choose between raising their prices or relying on already slim profit margins to absorb the increased cost of inventory.”
“Many small retailers are indirect importers and rely on other companies to import the products that they sell. These indirect importers [that is, small retailers] have even less ability to shift their supply chains to mitigate tariff costs.”
This sums up pretty well the challenges retailers are living with. But...
He believed that the best way to survive in retail was to focus on top line growth. And lots of inventory.
But…the winds of competition blew his store away.
He believed that the way to prosper was to focus on high initial mark-up, skimping on operating expenses.
So…the winds of competition blew his store away too.
You've seen them, right? You may be using one yourself.
The typical accounting package that lists expenses in alphabetical order.
How useful is that to retail management?!
Actually, there is an easy way for busy retailers to turn all that line-item data into useful management information. And maybe find those profits that have been hiding in plain sight!
Incredible value! 👀
Start NOW!