According to a Bloomberg report Tuesday (Nov. 11), companies such as Coach and Therabody are pulling back on markdowns that have historically fueled holiday sales. The result: Many shoppers will face fewer deals and shallower discounts this November.
At Upstream Brands, parent company of Ash Harbor and ThinkFit, owner Dan Peskorse said tariffs on imported materials have erased room for promotions.
“It just doesn’t make financial sense for us to offer discounts because our costs of goods are so high,” Peskorse told Bloomberg.
Products that were 10% to 20% off last year, such as ThinkFit’s meal prep containers, are now full price. A copper herb stripper that once sold for under $20 now retails near $30 after new U.S. tariffs on metals.
Luxury and wellness brands are also tightening promotions. Therabody, which makes $300-plus massagers and LED masks, has already raised prices by 5% to 7% this year and says it cannot afford the same markdowns as 2024. CEO Monty Sharma said the company is shifting some production out of China to mitigate tariff exposure. Meanwhile, Coach and other upscale labels including Nike, Levi’s and Ralph Lauren are limiting discounts to preserve brand value and exclusivity.
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Analysts expect “reasonable” Black Friday discounts, but often layered atop higher base prices.
Tariffs already appear to be impacting pricing. This year, Amazon has raised prices at more than double the rate of Target and Walmart, possibly because of the marketplace’s reliance on smaller sellers that may not be as well equipped to absorb tariffs.
Businesses dependent on retail spending are watching closely to see how price increases impact the holiday season. Simon Property Group, which owns and invests primarily in shopping, dining, entertainment and mixed-use destinations, recently shared that it will use this year’s holiday shopping season as a gauge of tariffs’ impact on retail.
Consumers are already making adjustments to their holiday shopping in response to the administration’s trade policy, with many individuals beginning earlier this year to better manage their spending.
