Even though retailers and brands will feel tariff-driven price pressures first, they might still have to furnish incentives in order to hold onto customers.
3. Private label might get its moment
Both firms asked consumers what categories concerned them most if prices were to rise, and groceries led the list for both: 60% in Numerator’s poll and 53% in Wunderkind’s. Since grocery purchases—unlike, say, clothing or a toaster oven—can’t be put off, shoppers in search of lower prices will probably consider private-label brands as an option.
“This is something we’ve seen during other times of economic disruption,” Glomb said. “Consumers seem willing to break from their desired brand simply because of cost savings. Now is the time for white-labeled brands to make the case on why they are just as good as named brands.”
4. Better act sooner than later
The tariff rate that kicked in April 5 is the “baseline” import duty of 10%. Ships already en route to the U.S. that arrive before May 27 will avoid the surcharge. But regardless of the grace period, brands and retailers may want to consider offering shopper incentives now anyway.
Why? Close to a third of shoppers in Numerator’s survey (31%) plan to stock up on items prior to tariffs having an effect on prices. In fact, 32% of respondents to Wunderkind’s survey said they’d started shopping around for deals and 13% are already buying.
