Retail giants Shein and Temu have announced price increases in response to upcoming tariff policies, which could benefit Walmart. These low-cost online retailers have long competed with Walmart for budget-conscious consumers. On April 25, both companies cited rising operating expenses due to global trade rule changes and tariffs as reasons for their price hikes. Shein stated, “To keep offering the products you love without compromising on quality, we will be making price adjustments.” Similarly, Temu issued a comparable notice. This move may alienate some customers who previously sought significant savings through these platforms. Meanwhile, Walmart remains better positioned due to its focus on affordability and essential goods. CEO Doug McMillon reassured investors during the company’s latest earnings call, saying, “Tariffs are something we’ve managed for many years, and we’ll just continue to manage that.” Walmart has also been working to restore prices to pre-inflation levels, potentially allowing it to reclaim market share lost to its online competitors.
— new from TheStreet