Retailers started 2025 with solid January sales, but optimism is clouded by new tariffs, inflation concerns, and shifting trade policies. From Walmart’s surprise mall purchase to Warby Parker’s wholesale push, February delivered a mix of strong earnings, strategic acquisitions, and economic uncertainty that’s shaping the months ahead.
Retailers kicked off 2025 on a strong note, with January retail sales climbing an impressive 4% year over year. However, industry optimism remains tempered by ongoing concerns over inflation and trade uncertainty.
To that end, the Trump administration opened February by imposing tariffs on Canada, Mexico, and China—only to abruptly suspend the implementation for Canada and Mexico. The new start date is now set for early March with an extra 10% for China to be levied, adding another layer of unpredictability for businesses navigating global supply chains. Meanwhile, China has placed PVH on its list of “undesirable entities”—a designation that carries no immediate repercussions but could complicate the company’s ability to operate in the region.
The evolving trade landscape, particularly changes to tariff structures and the de minimis import threshold, has e-commerce brands scrambling to assess potential impacts. These policy shifts could introduce new cost pressures just as retailers work to sustain post-holiday momentum.
In corporate earnings, VF Corp posted its first quarterly revenue increase in two years, crediting a boost in direct-to-consumer sales and strong wholesale performance. Walmart also reported a solid fourth quarter but warned that inflationary pressures and tariff-related costs will likely weigh on its 2025 growth and profitability projections.
Dillard’s, despite increased foot traffic throughout 2024, delivered disappointing Q4 results, underscoring ongoing challenges for department store operators.
Walmart made waves with the purchase of a shopping mall, though details remain scarce. The retail giant is collaborating with a Texas-based firm on redevelopment efforts but has yet to disclose specifics on its vision for the property.
Meanwhile, Steve Madden expanded its brand portfolio with the acquisition of Kurt Geiger, strengthening its presence in the premium footwear market. At the same time, Neiman Marcus announced the impending closure of its flagship Dallas location, marking a significant shift for the luxury retailer.
On the wholesale front, Warby Parker is doubling down on its expansion strategy, rolling out shop-in-shop locations within Target stores—a move that underscores the growing synergy between digitally native brands and mass-market retail.
As the first quarter unfolds, retailers are bracing for a volatile mix of economic uncertainty and shifting consumer behavior, with strategic acquisitions, expansion plays, and cost management emerging as key themes in an unpredictable landscape.