Retailers are quietly raising prices in response to tariffs, says Loop Capital's Anthony Chukumba

Retail Sector Pricing Strategies - Retailers are quietly increasing prices due to rising costs, but are wary of backlash [2][3] - Retail is a low-margin business, making it difficult for retailers to absorb higher costs [4] - Consumers are showing some selectivity in their purchases, with discretionary and higher-priced items being more at risk [7] Inflation and Tariffs - The White House argues that higher prices from tariffs are a one-time event and not an inflationary pressure [8] - Loop Capital Markets believes that tariffs could lead to an inflationary spiral, requiring retailers to raise prices repeatedly [9] - Inflation ticked up last month, and job numbers were worse, impacting retailers [10] Investment Opportunities - Warby Parker and National Vision are favored due to glasses being a non-discretionary medical necessity, allowing for price increases [11][12] - Savers Value Village, a thrift store operator with an average unit retail of less than $5, could benefit from consumers trading down [12][13] Long-Term Outlook - The sustainability of tariffs and their potential to cause significant economic harm remains a key question [14] - If tariffs cause significant economic harm, many of them will likely be rolled back [15]