Retailers, Shoppers Could Feel More Pain If Tariffs Spread
NEW YORK (AP) – An escalating trade war between the U.S. and China could mean higher prices on a broad array of products from toys to clothing. But some retailers will be less equipped to handle the pain than others, leaving consumers to carry the load.
Analysts say big box giants like Target and Walmart that marked their latest quarter with strong performance are best positioned to absorb the higher costs because of their clout with suppliers. They’re also taking a judicious approach to price increases to lessen the impact.
The losers will be the ones that have been struggling all along – the mall-based clothing stores and others that sell commoditized products like basic sweaters or that don’t have the financial wherewithal to absorb extra costs.