menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

Why Retailers Should Get Ahead Of Price Increases With Pre-Tariff Sales

5 0
06.05.2025

“Americans are broadly skeptical that Trump’s recent wave of tariffs will yield meaningful economic ... More benefits, particularly in the short term,” Gallup’s Megan Brenan wrote. (Photo by Lian Pan/China News Service/VCG via Getty Images)

With tariffs threatening retail prices across the board, retailers have begun to host pre-tariff sales to encourage shoppers to buy now before prices increase. Retailers, including intimates brand Bare Necessities, mattress maker Saatva and furniture retail Raymour & Flanigan, have used the tariff disruption as a way to encourage customers to buy now.

It’s not like retailers need an excuse to hold a sale, but this surely gives them a new opportunity and it offers more branding upsides than a typical sales promotion.

American consumers overwhelmingly expect tariffs to increase the cost of everyday purchases. By giving them a chance to get ahead of price increases, retailers are doing a value-added service for customers. It’s an act of goodwill that retailers hope will be remembered once the tariff uncertainty subsides.

“The tariffs are injecting uncertainty into the marketplace and when there is high uncertainty, consumers tend to overestimate their losses, so they try to hedge their losses as much as possible in a very irrational way,” Denish Shah, professor of marketing at Georgia State University's Robinson College of Business, told CBS MoneyWatch.

Offering a pre-tariff promotion gives retailers a consumer-psychology edge. “Consumers are very price-sensitive in this environment, so they are going to react very strongly to sales that companies are promoting,” Shah continued.

Nearly 90% of Americans expect Trump’s tariffs to increase retail prices, according to a

© Forbes