{"id":8042,"date":"2025-05-30T23:00:18","date_gmt":"2025-05-30T23:00:18","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/30\/macys-ceo-warns-of-price-hikes-as-tariffs-squeeze-department-stores\/"},"modified":"2025-05-30T23:00:19","modified_gmt":"2025-05-30T23:00:19","slug":"macys-ceo-warns-of-price-hikes-as-tariffs-squeeze-department-stores","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/30\/macys-ceo-warns-of-price-hikes-as-tariffs-squeeze-department-stores\/","title":{"rendered":"Macy\u2019s CEO Warns of Price Hikes as Tariffs Squeeze Department Stores"},"content":{"rendered":"
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People walk past the Macy\u2019s Herald Square flagship store on November 29, 2024 in New York City. Getty Images<\/span><\/figcaption><\/figure>\n

Tariff-driven price hikes are making their way into department stores. This week, Macy\u2019s CEO Tony Spring<\/a>\u2014whose company also owns Bloomingdale\u2019s and the cosmetics chain Bluemercury\u2014said rising costs tied to tariffs will soon impact prices across select product categories. His comments followed similar warnings from Walmart<\/a>, Target<\/a> and Nike<\/a>, whose business relies heavily on Chinese manufacturing.<\/p>\n

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Macy\u2019s sources about 20 percent of its merchandise from China. \u201cThere are going to be items that are the same price as they were a year ago. There [are] going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn\u2019t merit the quality or the perceived value by the consumer,\u201d Spring told CNBC after reporting quarterly earnings on May 28.<\/p>\n

Spring emphasized that price increases would be confined to specific brands and categories where customers still perceive strong value. He also noted that Macy\u2019s is actively reducing its exposure to Chinese imports by renegotiating supplier contracts and canceling or delaying orders that no longer meet the company\u2019s value criteria.<\/p>\n

For the quarter ending May 3, Macy\u2019s reported a 5 percent year-over-year revenue decline to $4.6 billion, with net income falling to $38 million from $62 million the previous year. The company expects tariffs to slightly erode its gross margin in fiscal 2025.<\/p>\n

Earlier this month, Nordstrom<\/a>\u2014one of Macy\u2019s chief competitors\u2014completed a $4 billion sale to Mexican retail group El Puerto de Liverpool. The deal, first announced in December 2024, faced delays due to tariff-related uncertainty but ultimately closed.<\/p>\n

\u201cDepartment stores may continue to see pressure on profit margins, weakened competitiveness compared to e-commerce players with more flexible supply chains and increased operational complexity,\u201d William London, an international business attorney and partner at California-based Kimura London & White LLP, told Observer. He noted that executives citing tariffs are not just highlighting cost increases, but also the broader strategic volatility they introduce into global sourcing.<\/p>\n

\u201cNow may be the ideal moment to introduce more U.S.-made alternatives that aren\u2019t vulnerable to tariff fluctuations,\u201d said Liya Getachew, principal at Sendero Consulting, who specializes in manufacturing, consumer-packaged goods and supply chain operations. She added that retailers must now strike a careful balance between maintaining customer loyalty and building supply chain resilience.<\/p>\n

Concerns around tariffs are mounting across the retail sector. Earlier in May, Walmart CEO Douglas McMillon told analysts that despite efforts to shield shoppers from rising costs, the scale of the tariffs makes it difficult to absorb the full impact. Walmart has already raised prices on certain items.<\/a><\/p>\n

Target CEO Brian Cornell has also flagged \u201cmassive potential costs\u201d from tariffs but said price increases would remain a \u201cvery last resort.\u201d<\/p>\n

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Other major consumer brands are already moving forward. Nike is set to implement price hikes starting in June, while Mattel<\/a> CEO Ynon Kreiz<\/a> said select toys may become more expensive if tariffs on Chinese goods stay in place.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n

\t\t\t\t\"Macy\u2019s<\/p><\/div>\n