In the time since the White House announced tariffs on April 2, the shares of two such firms — ThredUp and Savers Value Village — have gone up 31% and 22%, respectively, while the S&P retail select index has declined 7%, the Financial Times (FT) reported Sunday (April 20).

Secondhand sellers can draw bargain-hunting consumers, appeal to other consumers who are looking to sell items for extra cash, sell merchandise that is immune from the tariffs, and raise prices because sellers of new imported goods will have to do the same, according to the report. In addition, this sector usually does well during economic downturns and has been appealing to younger consumers in any case.

At the same time, some analysts said secondhand sellers could face inventory challenges if consumers hold on to their existing items, and could see consumers buying fewer goods of any kind amid economic uncertainty, per the report.

ThredUp said in March, before the tariffs were announced, that it expected revenue in the range of $67.5 million to $69.5 million in the first quarter and between $270 million and $280 million for the year, PYMNTS reported at the time.

“Given the uncertain consumer environment and the impact tariffs might have, secondhand could become an attractive option,” ThredUp CEO and Co-Founder James Reinhart said March 3 during the company’s quarterly earnings call.

Savers Value Village, whose Canadian stores account for more than one-third of the company’s revenue, was less bullish on the effects of tariffs, according to the FT report.

The company’s CEO, Mark Walsh, said during a February earnings call, per the report, that “the tariff issue certainly clouds the picture.”

Before there was talk of tariffs, consumers were turning to secondhand shopping options to manage their budgets amid inflation, according to the January 2024 PYMNTS Intelligence report, “Consumers Shop Secondhand Stores as Often as Other Retail.”

The report found that millennials were leading the way, with 52% of the millennials who bought secondhand products during the previous year saying they had increased their resale shopping.

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Bloomberg and Reuters reported on the meeting Monday, citing unnamed sources.

One of the retailers is Home Depot, which said it works with administrations from “both sides of the aisle,” according to the Bloomberg report.

Trump has said in the past that he would be willing to talk with companies about tariffs, per the report.

Reuters said Monday that an unnamed White House official confirmed the Bloomberg report and the representatives of major retailers would discuss how their businesses have been affected by the tariffs.

Walmart said CEO Doug McMillan would be at the meeting, according to the Reuters report.

Trump wrote in a Sunday (April 20) post on Truth Social: “The businessmen who criticize tariffs are bad at business, but really bad at politics. They don’t understand or realize that I am the greatest friend that American capitalism has ever had!”

It was reported Thursday (April 17) that some smaller retailers were being “uncharacteristically blunt” in sharing with customers the impact new U.S. tariffs are having on the prices of their products.

This marked a change from retailers’ traditional communication strategy when it comes to raising prices, Bloomberg reported Thursday.

It was reported April 11 that small- to medium-sized businesses (SMBs) are likely to suffer the biggest impact from new U.S. tariffs because while they account for one-third of imports to the United States, they don’t have the resources of larger companies to deal with higher prices and other disruptions. Nearly two-thirds of SMBs said tariffs and other trade issues would hurt their company.

Trump’s meeting with the large retailers comes during the 90-day pause that he placed on his planned higher tariffs on trading partners, without pausing those he placed on China, according to Monday’s Bloomberg report. In the meantime, before those 90 days are up, White House officials are meeting with foreign leaders and business executives.

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Retail and Logistics Expansion

Walmart and Amazon are both doubling down on logistics, signaling a critical shift in how delivery infrastructure is viewed. No longer a cost center, it’s now a competitive differentiator.

Earlier this week, Walmart announced an expansion of its delivery network that will add 12 million more U.S. households to its service coverage. This leap is driven by a data-first approach, leveraging customer insights and AI to predict demand patterns and dynamically adjust fulfillment strategies. The move supports Walmart’s broader omnichannel vision, where convenience is paramount and friction is the enemy.

Not to be outdone, Amazon has unveiled a sweeping $15 billion investment to expand its U.S. logistics footprint. This includes up to 80 new warehouses and a further pivot into transportation with the addition of less-than-truckload (LTL) services for inbound shipments to its fulfillment centers. For a company already known for its delivery dominance, the initiative underscores Amazon’s intent to make speed and control even more central to its value proposition.

Technological Innovations in Retail

At the core of Amazon’s operational revamp is a deeper integration of artificial intelligence (AI) across customer-facing and back-end functions. CEO Andy Jassy recently noted that the company is working on more than 1,000 GenAI applications spanning shopping recommendations, product reviews and internal efficiencies.

Amazon’s robotics division is a particular focal point. From automated sortation to adaptive robotics, the aim is to streamline warehouse operations while improving worker safety. Robotics vice president Joseph Quinlivan described it as “building an entirely new culture of automation,” one where machine intelligence augments human potential.

However, even as retail giants embrace AI and expand logistics, they must navigate the complex web of global trade policy. New tariffs on Chinese goods are disrupting long-established supply chains and forcing hard decisions on pricing and procurement.

Impact of Tariffs on eCommerce and Consumer Cost

Amazon, for instance, has begun surveying its third-party sellers to assess the impact of tariffs on their businesses. CEO Jassy has acknowledged that consumers may bear the brunt of these costs, as sellers recalibrate to protect margins.

These pressures are being felt across the eCommerce spectrum. Fast-fashion platforms Shein and Temu are preparing to raise U.S. prices following the removal of the de minimis exemption, which had previously allowed them to avoid certain import duties. With tariffs now biting at the heart of price-sensitive retail categories, some businesses are introducing explicit fees to offset new costs.

This changing economic landscape is driving innovation in payments, where the mandate is clear: reduce friction and preserve value for both merchants and consumers. According to recent data from PYMNTS Intelligence, more than half of U.S. consumers now prefer digital wallets over traditional payment methods — a trend that shows no sign of slowing. As inflation and trade policy reshape pricing strategies, seamless digital payments are becoming an essential buffer, helping to maintain customer satisfaction even as costs rise.

Digital wallets also offer merchants a crucial source of data. With each tap, businesses gain insights into purchase behavior, enabling more precise marketing, inventory planning and loyalty rewards. In a high-stakes environment where every basis point matters, these marginal gains can drive meaningful competitive advantage.

Looking Ahead

The convergence of AI, logistics and payments is creating a new operating system for retail — one built for speed, adaptability and customer intimacy. For Walmart, Amazon and others at the vanguard, the strategy is not just about keeping up with change. It’s about steering into it, designing business models that thrive under complexity.

Retailers must harmonize AI tools with tariff strategies, payments innovations with logistics frameworks. The winners will be those who don’t just optimize the system, but reimagine it entirely.

In this moment of flux, the message is clear: the future of commerce won’t be delivered in a box — it will be built from the ground up, across networks, algorithms, and increasingly, from the wallets in our pockets. 

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This marks a change from retailers’ traditional communication strategy when it comes to rising prices, Bloomberg reported Thursday (April 17).

Quoting marketing materials sent by retailers to their customers, the report said one company told its customers that it cannot avoid raising prices because of the tariffs and that it is “just as confused as everyone else” by the White House’s policy changes.

Another company told customers that price hikes are “unfortunately unavoidable” due to the tariffs, while another sent its customers a list of products comparing their prices before and after the tariffs, according to the report. 

This report came on the same day that the CEO of Fifth Third Bancorp, the indirect parent company of Fifth Third Bank, told analysts that nearly all the business owners he spoke with said they would need to raise prices to offset tariff costs because they have limited ability to absorb these costs in margins.

“What was maybe a little bit interesting to me is that the folks that have domestic supply chains were also saying they have to move prices in the U.S. because they’re expecting that if the tariffs hold, they’re going to experience volume losses in foreign markets, and … they require a certain amount of gross margin dollars just to be able to cover overheads and run their business,” Fifth Third Chairman, CEO and President Tim Spence said during the company’s quarterly earnings call.

Priority CEO Tom Priore told PYMNTS CEO Karen Webster in an interview posted Wednesday (April 16) that small- to medium-sized businesses (SMBs) navigate seas of complexity, with or without tariffs and no matter the economic environment.

“From the SMB standpoint, the exposure to tariffs at the supply chain level may actually be pretty small … but the main concern and the damage to small business lies with consumer uncertainty,” Priore said.

PYMNTS reported Tuesday (April 15) that the first-quarter earnings results of three of the nation’s largest financial institutions demonstrated that the consumer remains on solid footing.

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The company on Tuesday (April 15) released earnings showing 24% upticks in digital sales for the quarter and full fiscal year.

Identical sales were up 2.3% for the quarter — 2% for the year — while the company’s loyalty program membership climbed 15% to 45.6 million. 

Management noted on an earnings call that its consumers continue to look for value in a tough economic environment.

“Everything you’re hearing about, our own research validates. The consumer sentiment is low, etc.,” said Sharon McCollam, the company’s chief financial officer.

“But the consumer is also saying that they will do what they’ve been doing, which is seek value and find ways to tighten their pocket books, you know, food away from home versus food at home is always a decision for those customers who need value. So at this point, we have not seen a major change.”

One of the quarter’s main sales drivers was Albertsons’ pharmacy offering, where quarterly revenues were up 18% year over year.

“Although the pharmacy business is financially dilutive, cross shoppers between grocery and pharmacy are exceptionally valuable, contributing outsized customer lifetime value to the total store,” said Susan Morris, the company’s incoming CEO.

“For this reason, in fiscal ’25, we will continue to invest in our pharmacy and health platform to drive increased customer engagement and loyalty. We also expect growth in scripts and immunizations as pharmacy competitors continue to close stores.”

She also noted the evolution of the pharmacy customer, who will typically engage with the company in-store first for their first year before engaging across multiple platforms.

“As they engage with us, through those multiple platforms, that’s when we start to see, the bigger unlock and their lifetime value,” she said.

Morris is scheduled to become CEO May 1, the same day that current chief executive Vivek Sankaran is set to retire. She has been Albertson’s chief operating officer since 2018.

On the question of tariffs, management pointed out that the company procures 90% of its products domestically, putting it in a different position than some of its competitors. But even with those domestic purchases, there are ingredients sourced from places that are impacted by the tariffs, a situation the company says warrants further monitoring.

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The PYMNTS Intelligence report “What Makes Zillennials Shop?” explored the preferences and values-driven buying habits of zillennials, defined as consumers born between 1991 and 1999. It highlighted their growing impact on the retail market as they come of age.

The report revealed that zillennials are not a monolithic group; rather, they exhibit a polarization between brand loyalty and a pursuit of the best deals. While many prioritize price when choosing retailers, a higher percentage compared to the general population places greater importance on the availability of their preferred brands.

Zillennials are less likely than older generations to view brand loyalty and price as equally important, per the report. This suggests a more decisive shopping behavior driven by either a strong connection to specific brands, as evidenced by their disproportionate likelihood of holding brand subscriptions, or a focus on maximizing value.

Beyond price and brand, the report underscored the role of values in zillennials’ purchasing decisions. They are more inclined than older generations, including even Generation Z, to favor merchants whose environmental and social values align with their own. Many actively seek out environmentally sustainable products and prioritize merchants with ethical social practices.

Furthermore, 38% of zillennials show an interest in locally made or sourced products, the report revealed. This demographic is more likely than others to care whether a merchant is local or community owned.

The influence of others also heavily shapes their shopping habits. Recommendations from family and friends impact their retail purchases, and social media influencers and celebrities play a more substantial role in their buying decisions compared to older demographics, per the report. This highlights the importance of social networks and the opinions of peers in resonating with this generation.

Here are three key data points from the PYMNTS Intelligence research:

• Forty-one percent of zillennials prioritize price over brand availability when choosing a retail merchant, a higher share than the 38% of the total sample.
• Twenty-one percent of zillennials consider the availability of their preferred brands more important than price, higher than the 16% of the overall population.
• Thirty-eight percent of zillennials consider it very or extremely important that merchants offer environmentally sustainable products, a higher percentage than Generation X (less than 25%) and baby boomers and seniors (20%).

The PYMNTS Intelligence report also uncovered other aspects of zillennial shopping behavior. For instance, their engagement with voice technology and further details on their sources of shopping inspiration are explored in the full “Generation Zillennial” reports. The findings underscore the necessity for retailers to understand and adapt to the distinct preferences of this influential demographic to succeed in the evolving market.

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And with those fees, The Wall Street Journal (WSJ) reported Sunday (April 13), comes a message: Please don’t blame us.

In some cases, the report said, these businesses are adding flat fees, while others are charging customers a percentage of the subtotal. The idea is to pass on some of the cost of the tariffs onto consumers, especially on Chinese-made products — while placing some responsibility on President Donald Trump.

“We think transparency is the way to go here, and I am giving Trump full credit for his decision to add this tariff to all American consumers,” said Ryan Babenzien, CEO of Jolie, which sells high-end filtered shower heads that are made in China.

He told WSJ to he would add a “Trump Liberation Tariff” to online orders in the weeks ahead, though the amount of that levy will depend on how the larger tariff situation plays out the company’s tariff-cost calculations.

Other businesses are being more direct about the tariffs. For example, BigBadToyStore, which sells action figures and collectibles, recently wrote to its customers telling them it would apply a tariff-related fee to preordered items.

“I absolutely hate increasing prices to you, but the tariff situation is beyond our control,” wrote Joel Boblit, the company’s president and founder, promising to reduce or remove the charge if the tariffs decreased. 

PYMNTS examined the impact the tariffs are having on the financial services world last week in a conversation with Amias Gerety, partner at QED Investors.

The uncertainty surrounding the tariffs, he told PYMNTS CEO Karen Webster, is the key element undermining financial services, which depend on stability to provide loans, extend credit and make long-term investments. 

Conditions being what they are, it’s hard for businesses to make long-term commitments, whether constructing factories, expanding supply chains, or undertaking major projects. 

“Financial services need certainty,” said Gerety, who served as a Treasury department official under the Obama administration. “If you’re planning for 10 or 14 years, uncertainty is devastating.”

As companies approach earnings season, investors and executives brace for troubling guidance. Gerety expected sharp downward revisions in forecasts and increased volatility. While first quarter results may seem stable due to positive conditions, they now offer little predictive power given the drastically transformed economic landscape. 

Major financial institutions, including JPMorgan, have already adjusted their forecasts toward predicting recessionary conditions.

“Q1 was still a benign environment,” Gerety said, adding, “but the environment has changed dramatically, and even guidance will reflect that heightened uncertainty.”

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A shipping company used by the retailer told suppliers that Five Below suspended its cargo shipments, that no containers should be delivered to the yard starting Thursday (April 10) and that containers already loaded should be unpacked and returned to the carrier, Bloomberg reported Friday (April 11), citing a letter sent by the shipper to suppliers.

It is not clear if the letter went to all Five Below vendors, or only some, according to the report.

Reached by PYMNTS, Five Below said in an emailed statement that it has paused orders from China while it evaluates its options for mitigating the tariffs.

“Five Below is committed to providing the best trend-right products our customers want and need at a great price,” the statement said. “We are utilizing several tools to help mitigate tariffs and swiftly assessing the best of many available options for us to continue to bring forward great product at superior value in the current climate. In order to ensure maximum flexibility, we proactively paused orders from China given the escalation in the tariffs as we evaluate all options.”

The most recent tariff increases announced by the U.S. likely pose costs of 90% to 95% for Five Below, the Bloomberg report said, citing an estimate from Oppenheimer analyst Brian Nagel.

Five Below Chief Financial Officer and Treasurer Kristy Chipman said in March that 60% of the retailer’s total cost of goods are imported from China, either directly or through its domestic vendors, PYMNTS reported at the time.

“We are dealing with the tariffs that are in place today and our mitigation initiatives are well under way,” Chipman said March 19 during the retailer’s quarterly earnings call. “These initiatives include vendor collaboration, selective price adjustments primarily within our $1 to $5 price points, diversification of sourcing and increasing our focus on product newness.”

Global container bookings dropped 49% when the period of April 1-8 is compared to the previous week, March 24-31, the Bloomberg report said, citing an estimate from Vizion.

In a blog post announcing that finding, Vizion said that data shows how global shippers are reacting to changes in tariffs.

“This dramatic drop aligned with two key developments: the April 4th U.S. tariff announcement, followed by China’s retaliatory measures announced on April 5th,” the post said. “The result? A widespread booking freeze, as shippers paused mid-shipment cycle to reassess costs, timelines and broader trade strategy.”

The biggest drops have been seen in discretionary or seasonal categories, the post said.

It was reported April 9 that Amazon canceled orders from multiple vendors in China and other Asian countries after President Donald Trump’s April 2 announcement that the U.S. planned to levy tariffs on goods from more than 180 countries.

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For retail giants Amazon and Walmart, the realities of today’s macro landscape mark a broader inflection point where the behemoths are recalibrating everything, from procurement strategies to pricing models, in order to stay resilient.

Tariff Ripple Requires Real-Time Strategic Shifts

While the U.S.-led tariff tilt-a-whirl may have been paused for now, the duties in place on China remain. They are continuing to reverberate through the corridors of global retail. For companies like Walmart and Amazon, which rely heavily on Asian suppliers, the increased duties are significantly altering cost structures.

Walmart’s withdrawal of income projections was as much about signaling to investors as it was a logistical recalibration. With cost volatility in imported goods, particularly consumer electronics, apparel and home goods, Walmart needs maneuverability to protect its value proposition: low prices. Maintaining that edge while preserving margins is a delicate balancing act that tariffs make even more precarious.

Amazon, meanwhile, is taking a more aggressive, if quieter, stance. According to reports, the eCommerce titan has canceled orders from several Asian vendors in the wake of the tariffs. These preemptive cancellations are aimed at curbing financial exposure but have also created ripple effects throughout its sprawling supplier network.

In a parallel development, many Chinese sellers on Amazon are facing a stark choice: raise prices or exit the U.S. market altogether. With tariffs sharply increasing logistics and production costs, profit margins have thinned to unsustainable levels. Some sellers have opted to shift inventory to non-U.S. marketplaces, while others are looking to re-source their goods through Southeast Asia or Latin America — regions not currently subject to the same trade penalties.

According to PYMNTS Intelligence research, 60% of CFOs expect the tariffs to bring about additional economic uncertainty and planning challenges. The research also found that almost 70% of finance chiefs foresee supply shortages and product delays, with a similar share executing new costs to restructure their supply chains.

Read more: Walmart Takes Pricing Fight to Suppliers as Amazon Mulls TikTok Bid

Expansion as Defense in Today’s Environment

Even as Amazon trims its vendor list, it’s pushing the boundaries of operational innovation. In a surprising move, the company has begun testing a pilot program that equips its delivery drivers with defibrillators, enabling them to respond to emergency calls en route.

This initiative, while seemingly out of left field, is aligned with Amazon’s long-term playbook: deepen integration into daily life. Beyond potential PR wins and community goodwill, the program could serve as a proof-of-concept for expanding Amazon’s logistics network into new service categories — from healthcare to smart-city infrastructure.

While tariffs tighten profit margins, the battle for consumer loyalty is also pushing retailers to double down on expansion. Sam’s Club, Walmart’s membership-based warehouse chain, has announced plans to open 15 new stores annually. The strategy targets budget-conscious consumers seeking value during times of economic strain.

And amid the scramble to manage tariffs and revamp operations, Amazon is eyeing a different kind of prize: federal software contracts. As the Department of Government Efficiency (DOGE) pushes to overhaul outdated systems, the eCommerce giant reportedly sees an opportunity to anchor itself in the $200 billion government IT market.

Embracing Technology to Innovate and Grow

​In his 2024 letter to shareholders, published Thursday (April 10), Amazon CEO Andy Jassy emphasized the transformative potential of GenAI, stating that it is poised to reinvent virtually every customer experience and enable new ones. 

He noted that Amazon is investing aggressively in AI technologies, including the development of custom AI chips like Trainium2, to reduce costs and improve performance. Jassy asserted that companies not planning to leverage these intelligent models risk becoming uncompetitive. 

Amazon competitor Walmart is not one of those companies facing that danger. On Wednesday (April 9), Walmart launched Trend-to-Product, a new proprietary tech solution created to support Walmart’s designers and merchants that uses AI and GenAI to analyze and synthesize global data and trends, pulling information from the internet and tastemakers to power the Walmart Fashion team in creating on-trend, high-quality items.

Ultimately, the themes this week highlight the significant impact of recent tariffs on retail strategies and supply chains, as well as the efforts by the world’s largest retailers to innovate and expand their operations in response to evolving market conditions.​

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The retailer’s plan for new stores marks an acceleration, as it said two years ago that it would open 30 stores in five years, CNBC reported Wednesday (April 9).

Sam’s Club CEO Chris Nicholas said in the report that the business expects to gain customers as they look to save money in tough economic times.

“In times of plenty, we do well. But in tough times, we do really well,” Nicholas told CNBC in an interview.

Nicholas announced the retailer’s plans during Walmart’s investor day held Wednesday, according to the report.

He also said Sam’s Club plans to renovate all of its locations in the U.S., which number about 600, per the report.

Both the remodeled locations and the new ones will adopt an “all-digital” format introduced in October at a Sam’s Club in Grapevine, Texas, according to the report. That format includes no checkout lanes, store displays of items sold only online, and a larger area for fulfilling orders placed online and either picked up at curbside or delivered to the customer’s home.

Sam’s Club also expects to double its membership over the next eight to 10 years, helped in part by the new stores, per the report.

Other warehouse clubs have also announced growth plans, with Costco planning to open 28 new stores in its current fiscal year and BJ’s Wholesale Club planning to add 25 to 30 new stores over the next two fiscal years, the report said.

In a press release issued Wednesday ahead of its investor day, Walmart said that it added 373 stores and clubs over the past two years, while renovating another 1,930, and that the convenience of faster delivery, curbside pickup and in-store shopping are helping drive the company’s growth.

“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” John David Rainey, executive vice president and chief financial officer at Walmart, said in the release.

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