US retail giants raise prices due to tariffs
16 days ago
- #retail
- #business-strategy
- #tariffs
- US retail giants like Walmart, Home Depot, Target, and Lowe’s are facing challenges due to tariffs imposed by the Trump administration.
- Companies are increasing prices and diversifying import sources to protect margins against rising procurement costs.
- Walmart reported a 3.7% revenue increase in H1, with procurement costs rising 3.6%, maintaining stable margins.
- Home Depot noted modest price increases due to higher tariffs, with 50% of its merchandise sourced domestically.
- Lowe’s imports 60% of its merchandise, with 20% from China, and is focusing on diversification and competitive pricing.
- Target, heavily reliant on imports, is diversifying sourcing and using price increases as a last resort.
- Target’s gross margin declined by 1% in Q2 due to rising costs and falling sales, expecting recovery by 2026.