Major U.S. retailers including Walmart, Home Depot, Target, and Lowe's face rising costs from tariffs imposed by the U.S. administration. Tariffs have increased procurement expenses and added supply-chain complexity. Retailers responded with targeted price increases and efforts to improve cost efficiency to cushion the impact. Thin industry margins limit the ability to fully absorb tariff-related cost pressures. Replenishing inventory at post-tariff price levels has driven weekly cost increases that are expected to continue into the third and fourth quarters. One large retailer reported first-half revenue growth of 3.7% alongside a 3.6% rise in procurement costs, allowing margins to be maintained.
We've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters.
The straight cost impact of tariffs will be with us as long as the tariffs are with us.
We're doing what we said we would do, Doug McMillon explained last week. We're keeping our prices as low as we can, for as long as we can, he added, reflecting the constant pressure on costs that continue to rise.
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