Big box retail chain, Walmart, earned its title as the top of the retail industry by offering its customers competitive pricing for a wide selection of products. This top spot may soon be hanging in the balance as prices hikes are on the horizon and no department will be left unscathed it seems.
The cause for these widespread price increases? A recently increased tariff fee on all goods imported from Canada, Mexico, and China. Goods coming in to the United States from Mexico and Canada will now be facing a massive 25% fee and the chances of any big corporation absorbing the excess costs rather than passing it on to the consumer seems slim.
Walmart warns customers to brace themselves
It does not look like there is any hope left for consumers to cling to in terms of these price hikes. Even supermarkets are beginning to issue warnings to their customers regarding the impending price increases. A supermarket — a store who sells the absolute bare essentials of day-to-day living, amongst other things — warning customers to prepare for increases is quite an ominous sign for an already tense economic landscape.
The big box retailer might not be able to keep good on its promise to deliver a wide array of brands at affordable prices for much longer. The company recently announced a steep increase on the price of all of its products. This announcement came about as a result of Trump’s 25% tariff. When the tariffs were announced, Trump agreed to allow a month-long pause before they come into effect. Now that the hold is over, retailers across the industry will likely up their prices and some shoppers of Walmart in the States have already begun to notice this.
According to the company, as much as it wants to honor its promises of being budget-friendly, their hands are tied when it comes to international economic policies.
Doug McMillon, CEO of Walmart recently shared that lower income families are facing the heat the most during these uncertain times.
Additionally, the Consumer Price Index (CPI) for January revealed that inflation has been at its highest since August of the previous year. The report also stated that the reason behind this was the significant increase in the cost of eggs.
The rise in egg pricing has been an ongoing issue for several weeks now after a strain of bird flu reached the country and millions of birds had to be put down to curb the spread of the virus. Consequently, supermarkets across the country were hit with a severe egg shortage and consumers have been feeling the pinch of the increased pricing.
What products are expected to face price hikes?
Every retailer is going to enact price increases in some form or the other in the coming weeks. Here is a list of items that consumers can almost definitely expect to see price increases in at Walmart:
- Toys
- Electronics such as televisions, mobile devices, and laptops
- Clothing and footwear
- Steel
- Aluminum
- Cars
- Medications
- Semiconductors
- Wood
- A variety of imported foods such as avocados, strawberries, blackberries, raspberries, bananas, tomatoes, peppers, etc.
Future of Walmart
Price hikes might just be the last straw for consumers before they opt for an alternate grocer. Walmart has recently been the topic of extreme controversy that has led to ongoing boycotts of the store. Customers had noticed the store stopped stocking items of Latin and Mexican origin which sparked outrage in the Hispanic community. This discovery was made by customers not too long after the company made another shocking decision wherein it distanced itself from any Diversity, Equity, and Inclusion policies after facing pressure from the political right wing.