urpassing our expectations of 3.0 per cent, despite ongoing economic uncertainty and the impact of tariffs.” Part of this spike in sales stems from consumers rushing to purchase products before tariffs affect companies’ pricing measures, especially those importing goods from China. As Christopher S. Rupkey, chief economist at FWDBonds LLC, noted,  “These are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale. Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can.” How retailers have been responding to tariff-related shifts Several brands, including American luggage and lifestyle company Béis and Canadian sports gear and apparel company KoStudio, have been running promotional campaigns encouraging consumers to grab products before tariffs raise prices. In an email with the subject line “The tariff train is coming”, KoStudio told its customers that “due to a 125 per cent tariff increase, we’re raising prices very soon. Now’s your chance to shop smart and save big before the changes take effect!” Similarly, Béis recently told its customers in an email that “if you’ve been eyeing something now might be a good time to make your move, as current pricing remains in effect – for now.” Other companies, like American mattress brand Saatva, recently ran a 15 per cent off promotion as part of a “Beat the Tariffs” sale, to appeal to price-sensitive consumers in an increasingly unpredictable time for supply chains.  While this is certainly an effective method for companies to clear out current stock, crisis communications expert Megan Paquin pointed out that this strategy “can seem like a money grab”. Paquin warned that “those statements will also create a sentiment that the prices are increasing, even if they don’t, that may drive your customer to seek alternatives when they otherwise would not.” Melissa Minkow, CI&T’s global director of retail strategy, concurred with Paquin’s point, commenting, “While I think it’s considerate of retailers to do so if they genuinely know how much their prices are about to go up and want to help consumers in the interim, at the core, it’s utilizing the fact that consumers are scared.” Minkow added that feeling forced to discount merchandise is not an ideal scenario for retailers to fall into, nor is it a sustainable sales strategy.  Where small business owners like Viv for your V and Nguyen Coffee Supply have already begun seeking out alternative suppliers, several sourcing experts have noted additional measures brands can take to navigate these rocky tariff waters.  How retailers can strategically navigate tariff turmoil Deborah Weinswig, Coresight Research’s CEO and founder, gave retailers two tasks to undertake as they navigate necessary tariff adjustments. Set up a tariff Center of Excellence (CoE)  Having a CoE will provide retails with collaborative governance for tariffs, such as having a team to oversee mitigation funding and budget and validate sourcing and pricing strategies. Additionally, having a CoE will help retailers to develop tariff response capabilities, such as maintaining a library of trade tools and insights, like tariff databases and country-specific policies. Become friends with your local tariff/trade attorney Trade attorneys can help retailers avoid costly classification errors or fines, identify opportunities for tariff exclusions or deferrals and optimize sourcing strategies based on legal pathways. For companies that are unable to or don’t want to add on a CoE team or hire a tariff attorney for their business, supply chain experts like Isaac Hetzroni, the CEO and founder of Imprint Genius, a company that specializes in global product sourcing, manufacturing, and distribution of custom merchandise, recommended alternative options. As Hetzroni, better known to his Instagram followers as The Sourcing Guy, told Inside Retail, “There are scrappier, faster, and way more practical strategies they can use to stay ahead.” These include: Switching to EXW over FOB to lower tariffable value “Most small brands are still paying free on board (FOB), a shipping term for the point in the supply chain when a buyer or seller becomes liable for the goods being transported, pricing,” explained Hetzroni.  “But with tariffs calculated based on the invoice value, switching to Ex Works (EXW) [a term under the International Chamber of Commerce ruling that defines the point at which the seller’s responsibilities end and the buyer’s begin] can drop your dutiable amount by 3 to 5 per cent instantly. That’s because EXW removes inland freight and handling costs from your unit price, which means you pay duties on the true product cost, not all the extras.” Use bonded warehouses for flexibility “You can ship your products, park them in a bonded facility, especially in Mexico or at US ports, and wait to bring them into the US market until things stabilize,” Hetzroni advised.  “Or drip-feed them in to avoid paying duties on the full container all at once. It’s a simple way to buy time and protect your margins.” Start building a China plus-one game plan “You don’t need to move everything at once, but you do need to diversify,” the Imprint Genius CEO cautioned. “Vietnam, Turkey, Mexico, Egypt and even Pakistan are becoming strong players in categories like apparel, hard goods, and accessories. Many have lower labor costs and are outside the scope of the new tariff waves.” Ask your factories what options they have “Here’s what most brands overlook,” Hetzroni observed, “your existing factory might already be expanding into other countries. A lot of Chinese suppliers are opening new facilities in Vietnam, Thailand and Mexico to stay competitive. If you’re a consistent buyer, they’ll often help you shift production over – or at least share a solution to avoid getting crushed by tariffs.” If you’re too small or niche – sit tight and ride it out “The truth is, China is still the easiest and most reliable place for small companies to manufacture,” the supply chain strategist admitted. “Moving production outside of China is a completely different game, factories are harder to work with, minimum order quantities are higher, timelines are longer and infrastructure isn’t as turnkey. If your volumes are low or your product is too custom, trying to force a move might cause more damage than the tariffs themselves,” he warned.  “It’s not one-size-fits-all, but there are plays to be made if you’re ready,” Hetrzroni concluded.