Study: Retailers have opportunities to raise prices to offset impact of tariffs

October 3 2019 by Marianne Wilson from Chain Store Age

Price sensitivity by consumers is falling, giving retailers the opportunity to offset the potential impact of tariffs by raising prices.

That’s according to recent price elasticity study from First Insight, which found that elasticity and price sensitivity are falling in every category, including womenswear, menswear, children’s wear and home goods when compared to its previous 2017 study.

First Insights’ “Decoding Price Elasticity: Emerging Opportunities” study examined pricing and price elasticity trends on hundreds of thousands of items processed through InsightSuite, the company’s predictive analytics platform, which enables retailers and manufacturers to effectively select, price, market and buy new products with no sales history.  

“Retailers must keep pace with changes in elasticity of demand across every subcategory to maintain solid profit margins and achieve financial goals, particularly when facing product cost increases due to tariffs,” said Greg Petro, CEO of First Insight. “Our latest Decoding Price Elasticity study reveals insights into product categories and offers retailers and brands visibility into how best to price a product to meet demand, protect margins, maximize profits, minimize risks and avoid problems with excess inventory, particularly as retailers consider ways to offset the potential costs of tariffs.”

Read the Full Article at Chain Store Age

pricing  retailers  retail  retail pricing  Menswear  Set Entry Price Points  Featured Pricing  price elasticity  womenswear  childrenswear  home goods  price optimization

Looking for more info? Complete the form below.

Featured Product

InsightSuite for Small Business

Specialized Tools for Small & Emerging Businesses

The fastest and most cost effective way to increase sales, profits and sell-in for growing businesses and digitally native brands.

Learn more
Free Ebook

Maximize Value, Speed & Profit

Learn how to leverage Voice of the Customer Analytics and 3D Product Creation to make more profitable products, faster.

Get the Free E-book
Roundtable Video

Kohl's Creates Value W/Predictive Analytics

Learn How First Insight's Predictive Tools Fuel Kohl's Success

As one of the world's leading omnichannel retailers with more than 1,100 stores in 49 states, Kohl's is leveraging First Insight's predictive analytics solution and voice-of-the-customer data to improve their business.

Watch the Webinar
Webinar

Consumer Sustainability Survey 2021

The First Industry-Wide Consumer Study On Shoe Sustainability

This industry-wide survey aims to create a critical baseline that brands and retailers can use to ensure they understand what consumers actually comprehend, what terms and phrases resonate best, and what areas they should prioritize.

Download the Webinar & Findings
Supply Chain & Pricing

Navigating Disruption

How The Rockport Company is Optimizing Assortments and Pricing with Data + Digital Product Testing

Learn how The Rockport Company created a new product playbook powered by the Voice of the Customer and predictive tools.

View the Webinar & Highlights

HIGHEST DEMONSTRATED ROI. GUARANTEED.

Unparalleled Value Delivery and Lowest Total Cost Provider


Our industry-leading platform takes your experience management operations from reactive to proactive. We empower you to create products, brands, and customer and employee engagement that deliver growth to both your top and bottom lines.