Retailers and consumers alike have been feeling the effects of unpredictable tariff changes — like whiplash from an economic roller coaster. One minute, tariffs are off. The next, they’re back on. It’s no wonder there’s uncertainty in the air.
Despite these headwinds, sales so far this year have held up well. But as we head into early fall, it’s time to take a proactive approach to maintain that momentum and minimize risk.
Here are 7 smart strategies we’re sharing with our merchants to help steady the ship:
1. Review Your Fall On-Order Carefully
Take a close look at what’s coming in. Are you overbought in any category or class? If so, now’s the time to talk to your analyst about canceling or adjusting orders. Less clutter, more clarity.
2. Hold Back 20% of Your Open-to-Buy
When you’re heading to market, don’t spend it all at once. Keep 20% of your open-to-buy reserved for in-season purchases. This built-in flexibility allows you to react quickly if sales trends shift.
3. Assess Your Vendors Through a Strategic Lens
Look at sell-through rates and margins. If you’re facing higher costs due to tariffs, higher-margin items can give you a buffer. In most cases, the customer will ultimately absorb these increases — and so far, we’re not seeing price resistance in our better and luxury stores.
4. Get a Handle on Your Cash Flow
Now’s a good time to sit down with your accountant and map out your cash flow for the fall season. Account for sales projections, liabilities, and any large upcoming expenses like balloon payments. Knowing your month-to-month obligations gives you a clearer view of where you stand — and helps set realistic sales goals.
5. Consider Your Credit
Once you’ve taken a close look at your cash flow over the next season, consider whether you need a credit line to give you a greater sense of security.
6. Stay Plugged In to Tariff News
Maintain close communication with your vendors to stay updated on tariff developments. In some cases, the vendors are willing to absorb the cost of the tariffs or split it with their customers. You also need to understand the cost of your goods when they hit U.S. customs, since this will be when the tariff is applied.
Staying informed keeps you agile.
7. Don’t Panic — Stay Focused and Positive
Yes, it’s a fluid situation. But the key is to stay informed, maintain open lines of communication with your vendors, and keep a positive energy flowing in your stores. Customers pick up on your confidence, and your team thrives when you lead with clarity.
If you’re feeling unsure or need a second opinion, don’t hesitate to reach out. We’re here to help you navigate through the noise — and come out ahead.
