Macy’s to raise prices on some items in response to tariffs

Macy’s is the latest retailer to announce it will have to raise prices in response to global tariffs.

The company cut its annual profit outlook on Wednesday due to President Donald Trump’s tariffs and less consumer spending, The Wall Street Journal reported.

It also said that there has been more competition and more promotions from other retailers, which is affecting its bottom line.

Nike, Adidas to raise prices; Puma expected to follow

Despite the tariffs, Macy’s Chief Executive Tony Spring said that sales were stronger than planned in the spring quarter, but that the company could experience a downturn later in the year.

While prices will be going up at Macy’s, it won’t be on all products. Instead, it will be “selective price increases in selective brands [and] selective categories,” outgoing Chief Financial Officer and Chief Operating Officer Adrian Mitchell said, according to The Wall Street Journal.

Some items may no longer be carried "because the pricing doesn’t merit the quality or the perceived value by the consumer,“ Spring said, according to CNBC.

Walmart to raise prices due to tariffs

About 20% of Macy’s merchandise, according to CNBC, comes from China, where initially, Trump instituted a 145% tariff. The tariff has been lowered to 30% for now, The New York Times reported.

Macy’s has been undergoing a three-year plan to raise revenue, including closing low-performing stores and banking on e-commerce, ABC News reported.

About 150 stores will be shuttered by 2027.

Macy’s is not the first company to say it has to raise prices as a result of tariffs. Walmart and Nike have also said similar price increases were coming, ABC News reported.