SHOULD RETAILERS BE MORE CONSERVATIVE THIS HOLIDAY SEASON GIVEN THE NEW TARIFFS WITH CHINA?

Q: I’ve been carefully watching the increasing trade tensions with China and new tariffs on popular consumer goods, such as electronics. Do you think that the rising consumer prices on popular gift items will affect demand this holiday season, even if it doesn’t hit apparel directly? Should I make more conservative holiday plans?

Steve Pruitt: Good question. We have not heard about tariffs on apparel yet, although I would not be surprised if we see some later on. At this point in time we are very close to holiday and many deliveries are already in the pipeline. What’s more, we are already seeing rosy predictions for holiday sales, given that both consumer demand and wages are inching higher.

So, I am not as concerned with this holiday, but spring could be an issue. Stay in touch with your vendors since they will be the first to know for sure. On your end, make sure to update your plans month-to-month, so you keep tack of demand in your particular market.

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