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NAVIGATING ESCALATING TARIFFS AND SHIFTING CONSUMER BEHAVIOR IN RETAIL By David Harouche Retailers have always had to adapt to change, but the current landscape feels particularly challenging. With escalating tariffs driving up costs and shoppers becoming more selective about their spending, businesses are being forced to rethink how they operate. While adjusting pricing strategies and cutting costs may seem like obvious solutions, the real differentiator in today’s market is about execution, customer engagement and frontline expertise. If retailers aren’t preparing their teams to meet these expectations, they’ll find themselves losing ground quickly.
DAVID HAROUCHE Founder, CEO, CTO Multimedia Plus
Tariffs Are Reshaping Retail Pricing Strategies There’s no way around it: Tariffs are increasing costs, and retailers are feeling the squeeze. Whether it’s apparel, electronics or other consumer goods, the price of doing business is going up. That leaves retailers with tough choices. Do they absorb the costs and take a hit on margins? Do they raise prices and risk alienating customers? Or do they find ways to maintain profitability without simply cutting costs? For many, the immediate instinct is to lean on discounting to keep customers engaged. But that approach comes with risks. When retailers train customers to expect lower prices, they’re effectively devaluing their own products and eroding brand equity. Instead, the real opportunity lies in selling beyond price. To do this they must emphasize quality, exclusivity and the overall shopping experience. The key to making that shift? A well-prepared frontline workforce. Consumer Behavior Is Changing Retailers Need To Keep Up Retailers have always had to follow consumer trends, but the shifts we’re seeing today feel more dramatic. Economic uncertainty, inflation and a shift toward “value-based shopping” have made customers more deliberate and selective in their purchases. Shoppers are also doing more research than ever before. Many of them walk into stores already knowing the specs, reviews and online pricing of the products they’re considering. But they’re still looking for inperson validation. They need a reason to commit to the purchase. That’s where an engaged, knowledgeable associate makes all the difference. The challenge? Many retailers still aren’t investing in ongoing training for their store teams. If associates aren’t confident in product details, competitive differentiators and in-store offers, they’ll struggle to provide the level of service that today’s customers expect.
mannpublications.com
Where Execution Falls Apart and How To Fix It Most retail leaders agree that execution is everything, but ensuring consistency across hundreds or thousands of stores is tricky. Without a structured approach to training, communication and frontline engagement, even the best strategies can fall apart. One of the biggest obstacles is high turnover. Retail has always had higher-than-average turnover rates, but right now, it’s a serious problem. Every time an associate leaves, retailers lose valuable product knowledge and have to start from scratch with a new hire. And let’s be honest, traditional onboarding methods often aren’t enough to get new employees up to speed quickly. Training needs to be built into the fabric of day-to-day retail operations—quick, engaging and accessible in the moments that matter most. Whether it’s rolling out new pricing strategies in response to tariffs or ensuring store teams are aligned with online promotions, retailers who invest in continuous learning will always have the edge. What Retailers Can Do Right Now Retailers can’t control tariffs, inflation or broader economic shifts. But what they can control is how well their teams adapt, execute and engage customers. Here’s what should be top of mind: 1. Prioritize product knowledge over promotions: Customers don’t just want discounts—they want to understand what makes a product worth the price. Training associates to sell beyond price is essential for protecting margins and strengthening brand loyalty. 2. Align store teams with digital strategies: Omnichannel retailing isn’t just about technology—it’s about execution. If store associates aren’t aware of online promotions, fulfillment options or pricing differences, the experience breaks down, and so does the sale. 3. Make training an ongoing process: Training shouldn’t just happen during onboarding. Associates need real-time access to updates, product knowledge and customer engagement strategies, especially as economic conditions and consumer behaviors continue to evolve. Final Thoughts Retailers are facing more challenges than ever, but those who invest in their people will always have the upper hand. Success in retail is about pricing strategy and execution, engagement and ensuring that every customer interaction adds value. Retailers who embrace this mindset will be the ones that thrive, no matter what the economy throws their way.
April 2025
FM | 75