The Food Institute Mentions First Insight | Economic Strain: Food Bill Gets Unruly
Tariffs Cause Food Bill Tumult
For 30% of shoppers, any price increase from retailers would be too much for them, according to a recent report from First Insight. This highlights how sensitive consumers’ thresholds are for discretionary purchases.
Despite this, national retailers, such as Walmart, continue to consider price hikes as the Trump administration tariffs pose a threat to retail margins. Evidence suggests, however, that the move may prove too radical for today’s consumers. Across all retail industries, 83% of executives plan to raise prices even though 73% of consumers report “frustration” if affected by these increases on-shelf.
For retailers who choose to raise prices, shopper loyalty may be threatened, as most shoppers are skeptical that some of these businesses are using tariffs as an excuse to increase prices.
Read full article on The Food Institute.
