For those starting their holiday shopping, consumer experts have warned that Black Friday and Cyber Monday could look different this year amid tariffs.
“The tariffs came, and I think everyone didn’t know what was coming next,” said Jeremy Stewart. “We were negotiating with our factories, trying to lower costs on that end and then also raise costs a bit for our customers to help mitigate the overall price we had to pass on.”
It has been 13 years since Jeremy and Lila Stewart founded the Dallas-based flip-flop brand Hari Mari.
In that time, they have watched their brand grow from a single design to dozens of products, and they have averaged 30% growth year over year.
Then, in August, the couple made the decision to raise prices amid tariffs on Chinese imports, increasing costs anywhere from $10 to $15 a pair.
The Stewarts say their annual Black Friday and Cyber Monday sale is crucial to business. But while they are not choosing to forgo it even as their e-commerce business takes a dip, they are rethinking it.
For the first time this year, Hari Mari is skipping discounts for top sellers and doing what it can to offset a discount that does not dip as low as it once did.
“Given this has been a different year for sure, we’ve started a new promotion that’s actually running right now. It’s something we don’t normally do and we haven’t done before. What we’re offering is a gift with purchase, so hopefully those consumers who might be a little upset about the price increase we’re adding a little bit of an extra value,” said Lila Stewart.
According to recent reports, Hari Mari is not alone.
A Bloomberg report shared by partners at the Dallas Morning News named six major retailers cutting back on promotions this year.
CNBC also reported that the holidays are when consumers will start to feel the impact of tariffs because many retailers had stocked up ahead of duties, absorbing some of the early impact.
While the upcoming season is still uncertain, Hari Mari not only survived the pandemic but also grew.
“I feel like if a business, a brand, personal families can weather a storm like that, then now the conversation is not as big,” Jeremy said.
The Stewarts say they believe they will weather this challenge as well.
