America's favorite department store latest to warn that worst case tariff scenario is coming true
Macy's has joined a growing list of retailers raising prices as the impact of President Trump's tariffs reverberates across the retail sector.
The struggling department store chain said it will boost prices on select products, reduce its reliance on Chinese suppliers, and cancel or delay certain orders to cope with the new economic reality.
CEO Tony Spring explained the affected orders are ones 'where the value proposition is just not where it needs to be.'
'I think it's important to understand that we are not just broadly increasing price,' Spring said.
'We're being incredibly surgical about the situation with tariffs.'
Roughly 20 percent of Macy's products sold last year were from China, including bestsellers like Nike Jordans and Adidas Samba.
Those items, in particular, could see steep price hikes.
The tariff turmoil follows Macy's announcement that it will shutter 150 stores by the end of 2026, including 66 closures this year.
Like many department stores, Macy's has been suffering from dwindling sales amid the stratospheric rise of online rivals and the demise of America's suburban malls.
Some of those locations that shut recently include its 51-year-old Massapequa location and its iconic store in Center City, Philadelphia.
Macy's had been working to make up for its disappointing holiday sales while dealing with a scandal involving one of their employees who hid over $150 million in delivery expenses before the closures.
'Increasing prices isn't an ideal solution for Macy's, if only because sales are already under pressure and it doesn't want to dilute the value it offers to consumers,' Neil Saunders from GlobalData told DailyMail.com.
'However, it is going to be very selective about how and where it increases prices, so I don't expect everything will go up and it will still try to offer good value for money on key items.'
The company is trying to rebound after disappointing holiday sales and a recent scandal involving an employee who allegedly hid $150 million in delivery costs.
Its most recent earnings report showed $4.6 billion in net sales and a 2% dip in comparable sales.
While Macy's is working to reach new heights, other retailers are busy dealing with backlash over their decisions to raise prices.
Around 20 percent of products sold at Macy's at the end of its last fiscal year were from China
Nike, Pumas, and Adidas all confirmed that it would hike product costs on select items as a result of the tariffs.
Walmart left shoppers furious after confirming its costs would rise, and now some products have nearly doubled in price.
It also forced the retailer to slash about 1,500 US jobs as part of its restructuring plan in response to the hikes.
Other retailers in hot water over price hikes include Best Buy and Target.
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