Retail Merchandiser Volume 65, Issue 4 | Page 14

A fresh op

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Tariffs are disrupting the fast fashion model. How can retailers adapt?
By Blaine Nielson

Do tariffs spell the end of fast fashion? Maybe not, but they are forcing a reckoning with a retail model built on ultra-cheap imports and lightning-fast turnaround.

As US tariffs take hold, low-cost imports are running into real obstacles: higher landed costs, tighter margins, and delivery timelines that are harder to maintain. That disruption is opening the door for marketplace sellers, who are stepping in to fill the gaps with more agile sourcing and fulfillment strategies.
In fact, retailers brought in nearly $ 8 billion during the first 24 hours of Amazon’ s Prime Day. That’ s an increase of nearly ten percent compared to last year, powered by third-party sellers quick to adapt to trade dynamics and evolving consumer demands.
This disruption points to a broader shift: competing purely on price no longer guarantees success. The most resilient brands will be those that can articulate a value beyond cost, whether through product quality, delivery speed, or a compelling brand identity.
The new economics of retail
Trade policies, shifting consumer expectations, and global supply chain pressures have made today’ s retail landscape increasingly complex and, often, uncertain.
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