Retailers' margins will largely be okay, says SW Retail Advisors' Stacey Widlitz

Tariff Impact & Pricing Strategies - Luxury brands experienced price increases of 40-50% during COVID, raising concerns about consumer tolerance for further price hikes due to tariffs [2] - Retailers are employing a two-pronged strategy: reducing promotions and selectively increasing prices on products not directly affected by tariffs [3] Retailer Margins & Promotions - The majority of surveyed companies (approximately 70) are currently promoting less year-over-year, which is helping them maintain gross margins [4] - While some price increases are observed, the primary concern revolves around the potential impact on demand [5] Disruptions in Distribution Channels - Foot Locker's aggressive discounting (e g, 20% off everything in July) is negatively impacting direct-to-consumer (DTC) brands [6] - Foot Locker's promotional activities are creating a ripple effect in the market, potentially harming relationships with brands that also sell directly to consumers at full price [7]