This year, tariffs present a growing challenge for retailers, particularly in the fashion and technology sectors, which used to depend heavily on imports from China. In this article, we will explore current consumer trends and share strategies to help businesses adapt to the evolving market landscape to build long-term resilience.
The retail market today
Retail sales rose by 1.4 percent in March, according to Reuters, marking the strongest monthly growth since January 2023, when sales surged by 4.1 percent. Significant increases were recorded in building materials, car industry and garden equipment (3.3 percent), as well as sporting goods. The remaining actors of the retail industries saw a 0.5 percent increase in sales in the last quarter.
These indicate that consumer buying behaviors in the USA might already have been impacted by the announcement, as they rushed to buy the most impacted (and expensive) items in anticipation that they might become more expensive in the near future.
Why securing a strong digital strategy becomes important
Just as the COVID crisis tested retailers’ adaptability five years ago, new tariffs will once again challenge their ability to manage supply chain disruptions and shifts in manufacturing: such as sourcing from alternative suppliers to reduce tariff impact. To offset rising import and storage costs, retailers will need to lean more heavily on online shopping experiences. This period of uncertainty may, in fact, be a strategic opportunity to embrace virtual shopping and digital clienteling as a way to stay agile and competitive.
Absorbing the tariffs
One effective way to offset the impact of new tariffs is by shifting more focus to virtual shopping. This approach allows retailers to reduce the expenses tied to managing large inventories and complex transportation logistics. Embracing a direct-to-consumer model further streamlines operations, helping businesses stay lean and cost-efficient.
Investing in Clienteling tools
The new tariffs will also challenge customer loyalty to brands as they are already starting to react to the changing global economy. Customers are becoming more sensitive to their expenses and are planning them accordingly. In this context, it has become imperative for brands to leverage loyalty and clienteling strategies to keep in touch with their customers.
A powerful way to build meaningful customer engagement is by creating more reach-out opportunities: using SMS, chat, appointments, and conversational AI, all integrated within a unified platform. This not only enhances the customer experience but also gives retailers valuable insights into their customers’ needs and preferences.
If you are interested in learning how Salesfloor can help you implement these Clienteling tips, don’t hesitate to book a free demo with one of our clienteling experts today!
