One retail expert urges brands to generate as much customer demand as possible, as quickly as possible, before things ‘fall off a cliff.’
Despite warnings that severe supply chain disruptions from President Donald Trump’s tariff policies may deplete current inventories by June, many retailers don’t seem worried about running out of supplies. In fact, some are encouraging customers to take advantage of discounts designed sell as much merchandise as possible now. Many are launching these promotions before import duties send prices spiking and consumer demand plummeting.
According to official government data and reports frombusinesses in retailing, automotive, and other tariff-sensitive sectors, consumption surged in April. That’s because people went on buying sprees in advance of price hikes, which are expected when Trump’s steepest duties kick in later this month. Shoppers who stepped up their purchasing plans were met by full shelves and bustling showrooms, after many companies similarly sought to beat the bite of the loftiest levies by increasing their import volumes before the administration’s deadline.
Now, according to a report by CNBC, many retailers—especially those using direct-to-consumer models—are urging customers to undertake final buying sprees before prices rise. In some cases, those businesses are holding sales or offering other discounts on merchandize to spur purchases and exhaust their current reserves.
That move may seem counterintuitive. After all, any existing inventory will seem cheap compared to the same products imported after Trump’s duties take hold in just a couple weeks. So why offer discounts now on goods whose full prices will look like a bargain in post-tariff terms?
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First of all, the uncertainty of Trump’s repeatedly changing policies means businesses can’t feel confident about their medium-terms plans. As a result, many owners are opting to finalize any sales they can immediately, rather than risk seeing shoppers cut back on spending if prices rise as expected.
Meanwhile, the risk of consumer spending plummeting is tied closely to growing fears of an impending recession. Such a contraction could lead households to cut their expenses as they anticipate companies cutting headcounts—and with it, incomes.
As a result, CNBC reported, direct-to-consumer brands like Bare Necessities, Fashion Nova, Beis, and Knix are urging customers to buy from their current inventories before future imports cost them more. In some cases they’re even offering sale prices to move merchandise faster.
“They don’t want to give away all the margin now, but… it’s better to have 80 percent of the dollars now versus having to clear things or not getting any demand in the door two months from now,” Sonia Lapinsky, managing director at consultancy AlixPartners, told the business channel. “Retailers should be doing anything they can to get as much demand as possible, as soon as possible, because from our perspective, things are going to really fall off a cliff.”
