Holiday trends and predictions 2019: Tariffs will cut into consumer spending (part 2 of 5)
The holidays might be a season of goodwill, but internationally, things are likely to stay frosty.
The trade war shows no signs of ending anytime soon. As we covered in our July News Roundup, 44% of retailers expect their monthly online sales to grow by at least 25% in November and December. But they’re still cautious about the consequences the ongoing trade war will have.
What are they doing in response? According to Bizrate Insights data that was reported in Internet Retailer, opinions are split. Some retailers are increasing prices, while others are choosing to absorb the price jumps without passing them on to the consumer. Only 11% responded that they haven’t thought about their impact yet.
A panel of experts calculated that the trade war will cost each family an average of $460 – almost half of what they spent on holiday gifts last year. As the season approaches, every retailer, large or small, needs to take a closer look at how tariffs are affecting their business and decide whether it’s worth passing along those costs.