Walmart CEO Bill McMillon says Walmart stores in the state have already been notified that price hikes to its shoppers are coming, all from higher tariffs.
“We will do our best to keep our prices as low as possible, but given the magnitude of the tariffs, even as the reduced levels announced this week, we can’t absorb all the pressure given the reality of narrow retail margin. We’re positioned to manage the cost pressure from tariffs as well or better than anyone, but even at the reduced levels the higher tariffs will result in higher prices.
But how high of a percentage could these costs go up? Walmart CFO Jon Rainey says double digits.
“We’re going to keep prices as low as we can as long as we can, but when you see a 30% tariff on something, you’re likely going to see double digits. but when you look at the magnitude of some of the cost increases on certain categories of items that are imported, it’s more than what retailers can bear and more than what suppliers can bear,” said Rainey.
But Walmart is the only retailer in Florida jacking up cost from higher tariffs.
Higher tariffs will also affect Dollar General and Family Dollar stores, which announced higher prices.
Target CEO Brian Cornell said price increases for its customers are also coming. From its food section, Target imports fruits and vegetables from Mexican and pointed to higher tariffs for the higher cost that will hit consumers’
Those two retailers have a huge presence in many rural counties in Florida, and the higher cost could negatively affect lower-income families that reside in many of those counties.
