Scott Bessent admits that consumers may feel the increase in tariffs
Treasury Secretary Scott Bessent admitted on MSNBC’s “Morning Joe” that consumers may feel an increase in tariffs that have come into effect.
Roth Store executives said the company will raise prices and monitor “the impact on customers” in response to the tariff system implemented by President Donald Trump.
During the revenue call on August 21, Roth Store CEO James Conroy said the company is “unconventional” working to mitigate the impact of tariffs. However, Chief Operating Officer Michael Hertsshawn said prices could rise.
“In some places, we’ll move together and increase prices and test,” Hartshaun said during the phone call. “It’s really a regional decision by merchants, but if prices rise, it certainly gives them the flexibility to follow.”
Moves from the discount chain will lead to other retailers such as Sheen and Tem and international shippers navigating the tariffs.
Prices for low-cost goods imported could quickly surge due to trade slippage that allows some retailers to avoid Trump’s tariff hikes.
The Dublin, California-based discount retailer operates 1,873 Loss Dresses in 44 states, Washington, DC, Guam and Puerto Rico as of the company’s second quarter. It also operates 360 DD discounts in 22 states.
Despite Trump’s tariff pressure, Ross opens his shop
Ross Stores executives have announced plans for the company to open 31 new locations recently and expand its retail presence.
“We’re on track to open a total of around 90 new locations this year, consisting of around 80 Ross and 10 DDs. As usual, these numbers do not reflect plans to close or relocate around 10-15 old stores,” Ross told USA Today on August 27th.
The new store has announced that it has come after the company in March and has opened discount stores with 16 Ross Dresses and three DDs in 16 states.
During the fall season, Ross said, “We are “eager to focus on providing a significant value gap compared to traditional retailers, and positioning our assortment to deliver high-quality branded products at strong price points.”
Hartshorn previously said in a revenue call in May that the company will raise prices in stores to offset the increased costs faced by tariffs.
As operating profits drop, loss sales increase
According to Roth Store’s latest revenue report, comparable store sales increased 2% year-on-year in the second quarter of this year, while store customer visits increased 5.8%.
“We are encouraged by our end-of-quarter strength, especially early sales performance related to the return sales season,” the company said in an email.
Quarterly sales were driven by increased traffic, coupled with “basket size,” but the company said the mix of products sold increased prices “slightly” up.
Despite the increase, the company’s operating profit fell by about 3% year-on-year due to tariff-related expenses, the report shows.
“Like most businesses, we’re navigating the impact of tariffs,” Ross said in the email. “We report lower than expected tariff-related costs in the second quarter and are pleased to expect tariff costs to be eased as we progress through the year.”
Contributors: James Powell, Kathryn Palmer, Mike Snyder/USA TODAY
Natalie Neysa Alund is a senior reporter at USA Today. Contact her at nalund @usatoday.com and follow her at x @nataliealund.
