MAY 6, 2025 |
True or false? Mother’s Day retail spending is expected to increase this year. |
A) True B) False |
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TOP STORY |
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This year’s Fourth of July celebrations could be dimmer—and pricier—due to the escalating US-China trade war. |
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Staples of Independence Day festivities, like fireworks and flags, are predominantly manufactured in China, leaving them directly exposed to tariffs (To keep track of the latest shifts, check out our Live FAQ: The Impact of Trump’s Tariffs on Consumers, Businesses, and Trade).
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Outdoor cookout essentials, including grills, accessories, and patio furniture, are similarly caught in the crossfire. For example, about 80% of Traeger’s grills were made in China in fiscal 2024, with the remainder produced in Vietnam. Current tariff policies impose duties of 45% on Chinese-made grills and 35% on those from Vietnam, translating to higher prices and tighter supply chains as Americans prepare for their summer celebrations. |
The repercussions won’t end with Independence Day. Retailers are bracing for limited product availability as the critical back-to-school and holiday seasons approach. |
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IN THE NEWS |
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Mattel raises prices and pulls guidance as headwinds grow. Mattel may have outperformed expectations in Q1, but it’s still firmly in the crosshairs of the US-China trade war. While it has done more than many other toymakers to diversify its supply chain, its exposure remains a significant challenge. | | | |
ANALYSIS |
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In the next four years, most growth among digital shoppers and buyers will come from Gen Zers as other generations approach saturation. Gen Zers are the most likely to be skeptical of brand names, explore alternatives, and hold brands to high standards. |
Key Question: How should brands and retailers develop their ecommerce strategies to reflect consumer behavior? |
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Key Stat: Forty percent of Gen Zers have stopped using or purchasing a brand over its reversal of DEI efforts. This demonstrates that younger consumers demand brands be authentic and consistent with any political stance the brand takes. |
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