Recession or not, tariffs or not, retailers will have to right-size their pricing if they hope to stay afloat amid ever-multiplying headwinds.
And the answer, according to new data on price elasticity from First Insight, won’t lie in raising prices across the board in line with tariffs, or promising not to raise them at all, which seem to be the two camps retailers have found themselves in.
“Across-the-board price increases are risky, and blanket price cuts are generally suboptimal, leaving money on the table,” First Insight CEO Greg Petro told Sourcing Journal. “What’s needed is to understand which specific items or products can withstand a price increase, and which ones are in fact priced too high and need a price reduction.”
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