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Patricia M. Johnson & Richard F. Outcalt
Retail Strategists and Retail Turnaround Experts
Co-Founders, The Retail Owners Institute® • Business Strata:G®
The prospect of tariffs from 10% to 60% being imposed on goods from Canada, Mexico, China, and other countries by the incoming Trump Administration is certainly contributing to headlines and attention. Another flexibility test for retailers.
Some retailers have seized on the uncertainty that has resulted. They are using the fear of tariff costs leading to higher retail prices to heighten the shoppers' sense of urgency.
"Companies are pouncing at a moment when fear and uncertainty are on the rise and consumer spending is showing signs of weakness," reported The Wall Street Journal.*
Social media provides a ready platform for spreading the fear of potentially higher prices:
"Pre-Tariff Sale! Order now before prices double."
"Lock in our current prices now!"
“The very same items you are seeing now will be double the price once the tariffs kick in."
Meanwhile, others on social media are feeding into the tariff frenzy by urging people to buy their favorite products in bulk now. Some TikTok influencers are offering stockpiling guidelines on how long everyday items like makeup and shampoos can be stored.
Whether or not tariffs will be imposed, and at what rates, and when is very uncertain. And if imposed, how long they might remain in place is likely to be short-lived, according to some.
In the meantime, urging customers to buy more now to save later is, of course, a time-honored sales technique. And there’s nothing wrong with that.
So, this just may be the time to unleash your inner merchant!
Heighten the sense of urgency for your shoppers. Use the spectre ("veiled threat") of much higher prices looming after January 20 to...
Close more and larger sales now.
Hold prices longer in December. ("These prices will be like a big discount come January, February...")
And importantly, adjust – that is, reduce – your buying plans for 2025! (Your shoppers will be working their way through their stockpiles, remember?)
In retail especially, change IS the name of the game. Adjusting to uncertainty is an everyday flexibility test for retailers.
As one owner's email to all employees noted, "I don't think this will be the last curveball thrown in our direction."
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* "Retailers Play Up Tariff Fears To Lure Reluctant Shoppers." Suzanne Vranica, The Wall Street Journal, November 29, 2024.
* "New Tariffs Concern Some Small Firms." Ruth Simon, The Wall Street Journal, December 2, 2024.
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