By supplychainreport
Several global retailers, including Birkenstock and Pandora, are exploring pricing strategies that distribute the impact of U.S. tariffs across multiple international markets, rather than applying significant price hikes in the United States alone.
This approach aims to help maintain sales in the U.S. by avoiding steep price increases that may deter consumers. However, such pricing adjustments could contribute to inflation in other regions such as the European Union and the United Kingdom, where consumer prices have only recently begun to stabilize.
Birkenstock’s Chief Financial Officer noted that a “low-single-digit” price increase across global markets would be sufficient to absorb the impact of the tariffs.
Similarly, Pandora CEO Alexander Lacik shared that the company is evaluating whether to raise prices globally or focus increases in the U.S., which remains its largest market.
“Companies are really thinking about distributing the tariff,” said Markus Goller, partner at consultancy Simon Kucher in Germany. “A manufacturer from outside of the U.S. might say, OK, I cannot increase my prices to the U.S. market that much, so I will do a little increase in the U.S., and a little increase in Europe, and in other markets.”
Economists and central banks are closely monitoring this trend, as the ripple effect of price adjustments could influence inflation rates in various regions.
#GlobalRetail #TariffStrategy #PricingAcrossMarkets #SupplyChainNews #RetailEconomy
