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Retailers are starting to stockpile goods in their inventories to soften the blow of President Donald Trump’s tariffs on their bottom lines, The Wall Street Journal reports.
Companies from varied sectors―from warehouse chain Costco to specialty home goods retailer Williams-Sonoma―are reporting that they are holding more inventory after placing larger-than-normal orders to find some relief from the tariffs.
While retailers are turning to stockpiling goods, logistics experts warn retailers could get stuck with the unsold goods if consumer spending slows.
“On the one hand, I’m going to have higher prices on anything I import,” says Zac Rogers, a supply-chain professor at Colorado State University. “On the other hand, there’s a chance that consumer demand is going to drop down a bit and I’m going to have to hold on to these inventories.”
It’s the latest shift in a yearslong battle by retailers to nail down their inventory strategy following the pandemic, which left retailers with whiplash as they experienced product shortages and then overstocks.
