Retail Archives | PYMNTS.com https://www.pymnts.com/news/retail/2025/businesses-begin-tacking-on-fees-in-response-to-tariffs/ What's next in payments and commerce Sun, 13 Apr 2025 23:32:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.2 https://www.pymnts.com/wp-content/uploads/2022/11/cropped-PYMNTS-Icon-512x512-1.png?w=32 Retail Archives | PYMNTS.com https://www.pymnts.com/news/retail/2025/businesses-begin-tacking-on-fees-in-response-to-tariffs/ 32 32 225068944 Businesses Begin Tacking On Fees in Response to Tariffs https://www.pymnts.com/news/retail/2025/businesses-begin-tacking-on-fees-in-response-to-tariffs/ Sun, 13 Apr 2025 23:31:01 +0000 https://www.pymnts.com/?p=2683523 Companies across industries have begun issuing new fees in response to U.S. tariffs. And with those fees, The Wall Street Journal (WSJ) reported Sunday (April 13), comes a message: Please don’t blame us. In some cases, the report said, these businesses are adding flat fees, while others are charging customers a percentage of the subtotal. […]

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Companies across industries have begun issuing new fees in response to U.S. tariffs.

And with those fees, The Wall Street Journal (WSJ) reported Sunday (April 13), comes a message: Please don’t blame us.

In some cases, the report said, these businesses are adding flat fees, while others are charging customers a percentage of the subtotal. The idea is to pass on some of the cost of the tariffs onto consumers, especially on Chinese-made products — while placing some responsibility on President Donald Trump.

“We think transparency is the way to go here, and I am giving Trump full credit for his decision to add this tariff to all American consumers,” said Ryan Babenzien, CEO of Jolie, which sells high-end filtered shower heads that are made in China.

He told WSJ to he would add a “Trump Liberation Tariff” to online orders in the weeks ahead, though the amount of that levy will depend on how the larger tariff situation plays out the company’s tariff-cost calculations.

Other businesses are being more direct about the tariffs. For example, BigBadToyStore, which sells action figures and collectibles, recently wrote to its customers telling them it would apply a tariff-related fee to preordered items.

“I absolutely hate increasing prices to you, but the tariff situation is beyond our control,” wrote Joel Boblit, the company’s president and founder, promising to reduce or remove the charge if the tariffs decreased. 

PYMNTS examined the impact the tariffs are having on the financial services world last week in a conversation with Amias Gerety, partner at QED Investors.

The uncertainty surrounding the tariffs, he told PYMNTS CEO Karen Webster, is the key element undermining financial services, which depend on stability to provide loans, extend credit and make long-term investments. 

Conditions being what they are, it’s hard for businesses to make long-term commitments, whether constructing factories, expanding supply chains, or undertaking major projects. 

“Financial services need certainty,” said Gerety, who served as a Treasury department official under the Obama administration. “If you’re planning for 10 or 14 years, uncertainty is devastating.”

As companies approach earnings season, investors and executives brace for troubling guidance. Gerety expected sharp downward revisions in forecasts and increased volatility. While first quarter results may seem stable due to positive conditions, they now offer little predictive power given the drastically transformed economic landscape. 

Major financial institutions, including JPMorgan, have already adjusted their forecasts toward predicting recessionary conditions.

“Q1 was still a benign environment,” Gerety said, adding, “but the environment has changed dramatically, and even guidance will reflect that heightened uncertainty.”

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Report: Five Below Suspends Shipments From China Due to Tariffs https://www.pymnts.com/news/retail/2025/report-five-below-suspends-shipments-from-china-due-to-tariffs/ Fri, 11 Apr 2025 21:46:58 +0000 https://www.pymnts.com/?p=2683066 Discount retail chain Five Below reportedly suspended cargo shipments from China due to the trade war between the country and the U.S. A shipping company used by the retailer told suppliers that Five Below suspended its cargo shipments, that no containers should be delivered to the yard starting Thursday (April 10) and that containers already […]

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Discount retail chain Five Below reportedly suspended cargo shipments from China due to the trade war between the country and the U.S.

A shipping company used by the retailer told suppliers that Five Below suspended its cargo shipments, that no containers should be delivered to the yard starting Thursday (April 10) and that containers already loaded should be unpacked and returned to the carrier, Bloomberg reported Friday (April 11), citing a letter sent by the shipper to suppliers.

It is not clear if the letter went to all Five Below vendors, or only some, according to the report.

Reached by PYMNTS, Five Below said in an emailed statement that it has paused orders from China while it evaluates its options for mitigating the tariffs.

“Five Below is committed to providing the best trend-right products our customers want and need at a great price,” the statement said. “We are utilizing several tools to help mitigate tariffs and swiftly assessing the best of many available options for us to continue to bring forward great product at superior value in the current climate. In order to ensure maximum flexibility, we proactively paused orders from China given the escalation in the tariffs as we evaluate all options.”

The most recent tariff increases announced by the U.S. likely pose costs of 90% to 95% for Five Below, the Bloomberg report said, citing an estimate from Oppenheimer analyst Brian Nagel.

Five Below Chief Financial Officer and Treasurer Kristy Chipman said in March that 60% of the retailer’s total cost of goods are imported from China, either directly or through its domestic vendors, PYMNTS reported at the time.

“We are dealing with the tariffs that are in place today and our mitigation initiatives are well under way,” Chipman said March 19 during the retailer’s quarterly earnings call. “These initiatives include vendor collaboration, selective price adjustments primarily within our $1 to $5 price points, diversification of sourcing and increasing our focus on product newness.”

Global container bookings dropped 49% when the period of April 1-8 is compared to the previous week, March 24-31, the Bloomberg report said, citing an estimate from Vizion.

In a blog post announcing that finding, Vizion said that data shows how global shippers are reacting to changes in tariffs.

“This dramatic drop aligned with two key developments: the April 4th U.S. tariff announcement, followed by China’s retaliatory measures announced on April 5th,” the post said. “The result? A widespread booking freeze, as shippers paused mid-shipment cycle to reassess costs, timelines and broader trade strategy.”

The biggest drops have been seen in discretionary or seasonal categories, the post said.

It was reported April 9 that Amazon canceled orders from multiple vendors in China and other Asian countries after President Donald Trump’s April 2 announcement that the U.S. planned to levy tariffs on goods from more than 180 countries.

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Amazon and Walmart Overhaul Supply Chains as China Tariffs Bite https://www.pymnts.com/news/retail/2025/amazon-and-walmart-overhaul-supply-chains-as-china-tariffs-bite/ https://www.pymnts.com/news/retail/2025/amazon-and-walmart-overhaul-supply-chains-as-china-tariffs-bite/#comments Fri, 11 Apr 2025 08:00:37 +0000 https://www.pymnts.com/?p=2682031 When Walmart, the largest retailer in the U.S., abruptly withdrew its first-quarter operating income guidance last week, the message was unmistakable: the tariff storm is shaking the foundations of retail planning. The announcement, citing the need to maintain pricing flexibility amid newly implemented tariffs, is emblematic of the intense pressure facing multinational retailers in a […]

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When Walmart, the largest retailer in the U.S., abruptly withdrew its first-quarter operating income guidance last week, the message was unmistakable: the tariff storm is shaking the foundations of retail planning. The announcement, citing the need to maintain pricing flexibility amid newly implemented tariffs, is emblematic of the intense pressure facing multinational retailers in a geopolitically charged economic environment.

For retail giants Amazon and Walmart, the realities of today’s macro landscape mark a broader inflection point where the behemoths are recalibrating everything, from procurement strategies to pricing models, in order to stay resilient.

Tariff Ripple Requires Real-Time Strategic Shifts

While the U.S.-led tariff tilt-a-whirl may have been paused for now, the duties in place on China remain. They are continuing to reverberate through the corridors of global retail. For companies like Walmart and Amazon, which rely heavily on Asian suppliers, the increased duties are significantly altering cost structures.

Walmart’s withdrawal of income projections was as much about signaling to investors as it was a logistical recalibration. With cost volatility in imported goods, particularly consumer electronics, apparel and home goods, Walmart needs maneuverability to protect its value proposition: low prices. Maintaining that edge while preserving margins is a delicate balancing act that tariffs make even more precarious.

Amazon, meanwhile, is taking a more aggressive, if quieter, stance. According to reports, the eCommerce titan has canceled orders from several Asian vendors in the wake of the tariffs. These preemptive cancellations are aimed at curbing financial exposure but have also created ripple effects throughout its sprawling supplier network.

In a parallel development, many Chinese sellers on Amazon are facing a stark choice: raise prices or exit the U.S. market altogether. With tariffs sharply increasing logistics and production costs, profit margins have thinned to unsustainable levels. Some sellers have opted to shift inventory to non-U.S. marketplaces, while others are looking to re-source their goods through Southeast Asia or Latin America — regions not currently subject to the same trade penalties.

According to PYMNTS Intelligence research, 60% of CFOs expect the tariffs to bring about additional economic uncertainty and planning challenges. The research also found that almost 70% of finance chiefs foresee supply shortages and product delays, with a similar share executing new costs to restructure their supply chains.

Read more: Walmart Takes Pricing Fight to Suppliers as Amazon Mulls TikTok Bid

Expansion as Defense in Today’s Environment

Even as Amazon trims its vendor list, it’s pushing the boundaries of operational innovation. In a surprising move, the company has begun testing a pilot program that equips its delivery drivers with defibrillators, enabling them to respond to emergency calls en route.

This initiative, while seemingly out of left field, is aligned with Amazon’s long-term playbook: deepen integration into daily life. Beyond potential PR wins and community goodwill, the program could serve as a proof-of-concept for expanding Amazon’s logistics network into new service categories — from healthcare to smart-city infrastructure.

While tariffs tighten profit margins, the battle for consumer loyalty is also pushing retailers to double down on expansion. Sam’s Club, Walmart’s membership-based warehouse chain, has announced plans to open 15 new stores annually. The strategy targets budget-conscious consumers seeking value during times of economic strain.

And amid the scramble to manage tariffs and revamp operations, Amazon is eyeing a different kind of prize: federal software contracts. As the Department of Government Efficiency (DOGE) pushes to overhaul outdated systems, the eCommerce giant reportedly sees an opportunity to anchor itself in the $200 billion government IT market.

Embracing Technology to Innovate and Grow

​In his 2024 letter to shareholders, published Thursday (April 10), Amazon CEO Andy Jassy emphasized the transformative potential of GenAI, stating that it is poised to reinvent virtually every customer experience and enable new ones. 

He noted that Amazon is investing aggressively in AI technologies, including the development of custom AI chips like Trainium2, to reduce costs and improve performance. Jassy asserted that companies not planning to leverage these intelligent models risk becoming uncompetitive. 

Amazon competitor Walmart is not one of those companies facing that danger. On Wednesday (April 9), Walmart launched Trend-to-Product, a new proprietary tech solution created to support Walmart’s designers and merchants that uses AI and GenAI to analyze and synthesize global data and trends, pulling information from the internet and tastemakers to power the Walmart Fashion team in creating on-trend, high-quality items.

Ultimately, the themes this week highlight the significant impact of recent tariffs on retail strategies and supply chains, as well as the efforts by the world’s largest retailers to innovate and expand their operations in response to evolving market conditions.​

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Sam’s Club Accelerates Store Openings, Anticipates More Business in ‘Tough Times’ https://www.pymnts.com/news/retail/2025/sams-club-accelerates-store-openings-anticipates-more-business-in-tough-times/ https://www.pymnts.com/news/retail/2025/sams-club-accelerates-store-openings-anticipates-more-business-in-tough-times/#comments Wed, 09 Apr 2025 18:57:10 +0000 https://www.pymnts.com/?p=2681117 Walmart’s warehouse club business, Sam’s Club, reportedly plans to open 15 stores per year, saying its ability to save customers money is even more relevant in uncertain times. The retailer’s plan for new stores marks an acceleration, as it said two years ago that it would open 30 stores in five years, CNBC reported Wednesday […]

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Walmart’s warehouse club business, Sam’s Club, reportedly plans to open 15 stores per year, saying its ability to save customers money is even more relevant in uncertain times.

The retailer’s plan for new stores marks an acceleration, as it said two years ago that it would open 30 stores in five years, CNBC reported Wednesday (April 9).

Sam’s Club CEO Chris Nicholas said in the report that the business expects to gain customers as they look to save money in tough economic times.

“In times of plenty, we do well. But in tough times, we do really well,” Nicholas told CNBC in an interview.

Nicholas announced the retailer’s plans during Walmart’s investor day held Wednesday, according to the report.

He also said Sam’s Club plans to renovate all of its locations in the U.S., which number about 600, per the report.

Both the remodeled locations and the new ones will adopt an “all-digital” format introduced in October at a Sam’s Club in Grapevine, Texas, according to the report. That format includes no checkout lanes, store displays of items sold only online, and a larger area for fulfilling orders placed online and either picked up at curbside or delivered to the customer’s home.

Sam’s Club also expects to double its membership over the next eight to 10 years, helped in part by the new stores, per the report.

Other warehouse clubs have also announced growth plans, with Costco planning to open 28 new stores in its current fiscal year and BJ’s Wholesale Club planning to add 25 to 30 new stores over the next two fiscal years, the report said.

In a press release issued Wednesday ahead of its investor day, Walmart said that it added 373 stores and clubs over the past two years, while renovating another 1,930, and that the convenience of faster delivery, curbside pickup and in-store shopping are helping drive the company’s growth.

“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” John David Rainey, executive vice president and chief financial officer at Walmart, said in the release.

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Shein and Temu Face Massive Roadblock With New Package Duties https://www.pymnts.com/news/retail/2025/shein-and-temu-face-massive-roadblock-with-new-package-duties/ Wed, 09 Apr 2025 12:38:43 +0000 https://www.pymnts.com/?p=2669678 New tariffs on low-value packages from China could hinder the plans of Shein and Temu. As the Financial Times (FT) reported Wednesday (April 9), the White House has upped duties on those packages to 90% of their value, or a flat fee of $75 that would increase to $150. The duty goes into effect May 2, with […]

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New tariffs on low-value packages from China could hinder the plans of Shein and Temu.

As the Financial Times (FT) reported Wednesday (April 9), the White House has upped duties on those packages to 90% of their value, or a flat fee of $75 that would increase to $150. The duty goes into effect May 2, with the flat-fee hike happening after June 1.

The shift follows President Donald Trump’s closing of a loophole that allowed Chinese imports under the “de minimis” threshold of $800 to arrive duty-free.

As the FT notes, this increase is a major blow to eCommerce fast fashion retailers Shein and Temu in the U.S., considered to be their largest market. The two companies have been able to compete by offering what the report characterizes as “eye-wateringly cheap” products, in part by avoiding import duties.

Analysts warn that closing the de minimis loophole will both upend the business models of these cheap retail platforms and other Chinese eCommerce firms while also slowing deliveries, the report added.

Brittain Ladd, a U.S. supply chain consultant who has worked for Amazon and Dell, told the FT that ports would be flooded with packages.

Ladd added that the commerce department had introduced a new software system to manage the duty payments, but there would still be delays as “the volume of packages that have to be processed is massive.”

Meanwhile, PYMNTS on Wednesday examined the way artificial intelligence (AI) can help businesses mitigate some of the impacts of the tariffs.

“Tariffs, like any crisis, are extremely dynamic — and the latest round that imposed tariffs on all U.S. importers is a perfect example,” Leagh Turner, CEO of Coupa Software, told PYMNTS.

“They impact businesses in different ways depending on their country, product type and trade relationships. That makes it difficult for leaders to predict the full impact to their business.”

But with AI, that report added, companies can monitor and understand shifting tariff policies in real time, allowing them to pivot more quickly.

“AI-powered trade policy monitoring scans government announcements and regulatory updates to forecast potential tariff shifts,” Tarun Chandrasekhar, president and CPO at Syndigo, said in an interview with PYMNTS.

He added that historical analysis of earlier trade policies and macroeconomic trends can find patterns that can provide brands with insight into how possible future tariff increases or decreases could affect them, such as how tariffs on specific materials impacted sales of certain clothing items.

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Levi Strauss Becomes ‘D2C-First Company’ as That Business Reaches 52% of Revenue https://www.pymnts.com/news/retail/2025/levi-strauss-becomes-d2c-first-company-as-that-business-reaches-52-of-revenue/ https://www.pymnts.com/news/retail/2025/levi-strauss-becomes-d2c-first-company-as-that-business-reaches-52-of-revenue/#comments Wed, 09 Apr 2025 01:19:20 +0000 https://www.pymnts.com/?p=2646811 Levi Strauss & Co. said it saw better-than-expected financial results in the first quarter as it continued to increase its focus on the direct-to-consumer (D2C) business. At the end of the quarter, the D2C business accounted for 52% of the apparel company’s total global net revenues, according to a Monday (April 7) earnings release. That […]

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Levi Strauss & Co. said it saw better-than-expected financial results in the first quarter as it continued to increase its focus on the direct-to-consumer (D2C) business.

At the end of the quarter, the D2C business accounted for 52% of the apparel company’s total global net revenues, according to a Monday (April 7) earnings release.

That figure was up 2 percentage points from a year earlier and, as it accounted for more than half of revenues, marked a milestone in the company’s transformation into “a D2C-first company,” Michelle Gass, president and CEO of Levi Strauss, said Monday during a quarterly earnings call.

“Direct-to-consumer continues to be the primary growth driver, up 12%, fueled by positive comp growth, successful new openings and strong eCom performance,” Gass said.

The shift to D2C will result in “more productive and profitable doors,” Gass said, adding that the company expects to build several hundred more stores in the future.

Levi Strauss aims to have D2C account for 55% of its business over the longer term, even as it expands its wholesale business as well, she said.

The wholesale business was up 5% during the quarter, driven by door expansion, more space at existing stores and a wider lifestyle assortment.

“Consistent with our strategy to diversify our channels of business, U.S. department stores now represent just 7%, which is less than half of what it was 10 years ago,” Gass said.

In another change, Levi Strauss announced in the earnings release that it reclassified its Dockers business as “discontinued operations” in the first quarter. The company disclosed during the fourth quarter that it plans to sell the Dockers business, and it said in the Monday earnings release that it aims to complete a sale during the current fiscal year.

Asked about the impact of tariffs, Gass said during the call that Levi Strauss is well positioned to navigate this challenge because almost 60% of its revenue is generated outside the U.S. and it has an “agile global supply chain” and deep vendor relationships.

Harmit Singh, chief financial and growth officer at Levi Strauss, said during the call that the company has already imported to the U.S. most of the product it needs for the spring and early summer.

Singh added that in terms of share of product imported into the U.S., China accounts for 1%; Mexico, 5%; and Vietnam, mid- to high-single digits.

Gass said during the call: “I’d say our supply chain is more agile today than it ever has been. We make pivots all the time. We will continue to do so as we look to address the issues both in the short, medium and long term.”

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Best Buy Launches Creator Program With Influencer Storefronts https://www.pymnts.com/news/retail/2025/best-buy-launches-creator-program-with-influencer-storefronts/ Tue, 08 Apr 2025 18:37:24 +0000 https://www.pymnts.com/?p=2619449 Best Buy has debuted a platform that lets creators and influencers collaborate with the retailer. The company announced its Best Buy Creator program Tuesday (April 8) in conjunction with Best Buy Storefronts, a “curated shopping experience” where customers can shop tech from their favorite influencers and creators. “Storefronts give creators the ability to create a one-stop shop to […]

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Best Buy has debuted a platform that lets creators and influencers collaborate with the retailer.

The company announced its Best Buy Creator program Tuesday (April 8) in conjunction with Best Buy Storefronts, a “curated shopping experience” where customers can shop tech from their favorite influencers and creators.

“Storefronts give creators the ability to create a one-stop shop to highlight tech features in their content and earn a commission on sales referred through their storefront, with no commission cap,” Best Buy said in a news release.

According to the release, a number of leading tech influencers are joining the launch with their own storefronts. These include Linus Sebastian of Linus Tech Tips, who has more than 16 million YouTube subscribers and 8 billion views; tech reviewer Judner Aura, also known as UrAvgConsumer; and tech and lifestyle creator Jenna Ezarik.

“We know shoppers love to be inspired and discover innovative tech from their favorite content creators,” said Jennie Weber, Best Buy’s chief marketing officer. “We’re excited to launch the Best Buy Creator program and empower creators to turn their passion and authenticity into a shoppable retail experience that’s fun, inspirational and convenient.”

Best Buy had hinted at the launch of this program last month during its quarterly earnings call.

“Influencers and creators will be able to build their own branded digital storefronts on Best Buy’s website, which we expect to drive increased traffic, engagement and sales,” CEO Corie Barry said at the time.

Meanwhile, recent PYMNTS Intelligence research has found that while influencers do live up to their name in convincing shoppers to make purchases, the picture is more complicated.

The report “Generational Pulse: Just How Influential Are Influencers?” found a considerable percentage of consumers make some purchasing decisions based on the recommendations, comments or links provided by influencers.

However, that share falls significantly in terms of regular purchases, with only 1 in 8 consumers reporting that they follow the lead of influencers when it comes to being incentivized to make frequent purchases.

“And clicking through to the buy button hardly occurs in a vacuum,” PYMNTS wrote. “The data shows that 95% of consumers do some other form of research — leading to product reviews and platforms — in tandem with taking the influencers’ opinions into account.”

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Stop the Steal: Smart Stores Help Brands Meet Consumers in New Settings https://www.pymnts.com/news/retail/2025/stop-the-steal-smart-stores-help-brands-meet-consumers-in-new-settings/ https://www.pymnts.com/news/retail/2025/stop-the-steal-smart-stores-help-brands-meet-consumers-in-new-settings/#comments Tue, 08 Apr 2025 08:00:34 +0000 https://www.pymnts.com/?p=2566318 Inventory keeps retailers in business. Inventory keeps consumers loyal to their preferred to merchants. Inventory makes impulse buying possible and keeps sales flowing. Inventory has also, for a long time, been a bit of a hit-or-miss proposition — merchants might have too much stock on hand, languishing on shelves, ripe for markdowns. Or there might […]

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Inventory keeps retailers in business. Inventory keeps consumers loyal to their preferred to merchants. Inventory makes impulse buying possible and keeps sales flowing.

Inventory has also, for a long time, been a bit of a hit-or-miss proposition — merchants might have too much stock on hand, languishing on shelves, ripe for markdowns. Or there might be too little on hand, which would send disappointed customers to the nearest competitor. In at least some cases, and notably so during recent years and with the rise of self-checkout, theft depletes inventory.

In fact, studies have shown that a significant percentage of consumers have admitted to using self-checkout kiosks to aid them in their stealing; locked-up inventory, on the other hand, tends to discourage shopping — and, certainly, browsing, which depends on a tactile experience. You can’t examine a new shaving cream’s ingredients, for example, if it’s sequestered behind an alarmed sheet of plastic.

self-checkout theft stat callout

In the report recently done in collaboration between PYMNTS Intelligence and Cantaloupe, “Overcoming Retail Challenges: Smart Stores to the Rescue,” we found that with the rise of “smart stores,” which connect security and analytics, the state of inventory management improves, and keeping the right goods in stock, and on hand, becomes more science than art.

“Next-gen self-service commerce is redrawing the boundaries of conventional retail, enabling businesses to embed commerce directly within consumer environments and capture previously inaccessible market opportunities,” PYMNTS wrote.

Underpinning it all — and especially where inventory has been concerned — artificial intelligence (AI), the Internet of Things (IoT) and even weighted shelf sensors, have improved record keeping in terms of the items that are in demand (or are not).

Advanced Technologies

These advanced technologies such as those found in Cantaloupe’s Smart Stores, which include weighted-shelf technology and built-in tracking cameras, help keep an eye on which items are being sold with 99% accuracy. IoT-enabled systems, which enable data to cross a broad range of devices and anticipate which inventory needs to be replaced — and when — weave real-time visibility into inventory levels.

There’s the ability, too, to adjust pricing in order to help boost consumer interest in buying an item (and thus render inventory management more efficient). As a result, there’s the dual satisfaction, on the part of the merchant, of avoiding stockouts and increasing sales.

The data show that self-service retailers can recalibrate stock allocations and product assortments with precision and in a fluid manner as consumers’ tastes change — and the proof is in the top line. Surveys of the Smart Store metrics show that early adopters of these solutions have already reported an average 30% increase in sales relative to pre-implementation levels.

There’s also the reduced operational cost tied to staff — better inventory management means that less time and money, in terms of back-room and shelf-stocking efforts, must be expended just to keep products available.

The convergence of smarter technologies in the service of retail has improved commerce even in settings that might not be conventionally thought of as retail. Consider the example where, as PYMNTS Intelligence and Cantaloupe found, a college campus, after replacing vending machines with Smart Stores drove a more than 250% weekly increase in sales. Revenues surged, from $450–$600 to $1,600 per week. Restocking efficiency was just as compelling, with a restocking time of only 1.5 minutes per Smart Store unit.

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3 Ways Retailers are Leaning More on Acquirers for Data and Strategy https://www.pymnts.com/news/retail/2025/3-ways-retailers-are-leaning-more-on-acquirers-for-data-and-strategy/ Mon, 07 Apr 2025 15:42:28 +0000 https://www.pymnts.com/?p=2558597 For retailers and merchants, payments are no longer just a “check the box” exercise. As the world evolves and shopper expectations continue to mature, businesses are increasingly relying on payment processors and merchant acquirers, not only for the bread-and-butter services of transaction processing but also for valuable data insights and strategic guidance.  Look no further […]

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For retailers and merchants, payments are no longer just a “check the box” exercise.

As the world evolves and shopper expectations continue to mature, businesses are increasingly relying on payment processors and merchant acquirers, not only for the bread-and-butter services of transaction processing but also for valuable data insights and strategic guidance. 

Look no further than the fact that Stripe’s application for a Merchant Acquirer Limited Purpose Bank (MALPB) charter has been accepted by the state of Georgia’s Department of Banking and Finance for proof that the acquirer and retail landscape is entering a new era.

The evolving relationship between retailers and acquirers reflects broader changes in how data is leveraged for strategic decision-making. The accelerated digital transformation of the retail sector, coupled with shifting consumer behaviors and competitive pressures, has underscored the importance of granular, real-time insights.

Acquirers, armed with a treasure trove of transactional data, are uniquely placed to help retailers optimize their operations, enhance customer experiences and drive revenue growth. From personalizing customer experiences to fortifying security measures and optimizing payment strategies, the influence of acquirers on retail strategy is growing rapidly.

Read also: Retail Customers Demand Simpler Checkout Experiences

Retailers Seek Digital Commerce Solutions to Add Efficiency and Deter Shrink

Given the realities of today’s commerce landscape, more and more retailers are looking to their acquirers for insights into optimizing their payment strategies. This can include everything from streamlining checkout processes to implementing alternative payment methods that appeal to new customer demographics.

“Merchants are acutely aware that frictionless experiences drive sales,” Guida Sousa, senior vice president, product management at Mastercard, told PYMNTS, noting that consumers demand immediacy, security and seamless experiences.

Payment optimization is no longer just about lowering fees. Retailers are looking to acquirers for guidance on improving authorization rates, reducing chargebacks and even strategically routing transactions to achieve cost savings.

Data from the PYMNTS Intelligence study “The Online Features Driving Consumers to Shop With Brands, Retailers or Marketplaces,” done in collaboration with Adobe, indicated that 50% of consumers consider the ease of a merchant’s checkout process when choosing where to shop.

“Everybody wants to streamline the checkout process. That’s what is driving payments,” Justin Downey, vice president of product at Maverick, told PYMNTS. “If you create too many hurdles in the checkout process, you might lose the payment.”

By analyzing transaction data across various channels, acquirers can help to identify inefficiencies as well as suggest improvements that may be able to enhance both customer satisfaction and profitability. For example, cross-border retailers are increasingly working with acquirers to localize payment options, providing a smoother experience for international shoppers.

As detailed in PYMNTS Intelligence’s work with Carat from Fiserv, “Platform Business Survey: The Rise of Embedded Payments,” we found that adding payment features to services has enabled independent software vendors and marketplaces to generate revenue by bring payments more prominently to the forefront of the commerce experience. Data suggests that 65% of ISVs and marketplaces that do not currently offer payment capabilities plan to add embedded financial products for payment acceptance.

See more: Embedded Finance Boom Continues to Reshape Financial Ecosystems

Unlocking Greater Personalization and Fraud Detection 

Collaboration between retailers and acquirers is key to creating a layered approach to security, and with the surge in online shopping, fraud prevention and risk management have become central to retail operations. Acquirers are increasingly serving as crucial allies in identifying suspicious activity and mitigating potential losses.

Using sophisticated algorithms and machine learning models, acquirers can flag anomalies in transaction data that may indicate fraud. Retailers are leveraging these insights to enhance their own fraud detection systems and streamline their response mechanisms.

On Thursday (April 3), Visa unveiled three new value-added services designed to make accepting payments easier and more secure for acquirers, payment facilitators, retailers, marketplaces and shops, underscoring how the marketplace is responding to the needs of its stakeholders with innovative solutions.

Ultimately, the rise of omnichannel shopping has created the need for a seamless experience across physical and digital touchpoints. By partnering with acquirers who can unify payment data from various sources, retailers can create a cohesive view of the customer journey. The data acquirers process offers invaluable insight into spending patterns across different segments, which retailers can use to craft highly targeted marketing strategies.

By synthesizing this information, retailers can refine their marketing efforts, tailor loyalty programs and improve product recommendations.

The post 3 Ways Retailers are Leaning More on Acquirers for Data and Strategy appeared first on PYMNTS.com.

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Walmart Takes Pricing Fight to Suppliers as Amazon Mulls TikTok Bid https://www.pymnts.com/news/retail/2025/walmart-takes-pricing-fight-to-suppliers-as-amazon-mulls-tiktok-bid/ Fri, 04 Apr 2025 08:00:49 +0000 https://www.pymnts.com/?p=2541316 As global economic conditions grow increasingly complex, major retail players like Walmart and Amazon are making strategic moves to secure their footholds and expand their influence. From navigating supplier negotiations to forging partnerships and exploring new technological frontiers, the marketplace’s largest retail and eCommerce companies appear to be constantly reshaping their strategies to maintain a […]

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As global economic conditions grow increasingly complex, major retail players like Walmart and Amazon are making strategic moves to secure their footholds and expand their influence.

From navigating supplier negotiations to forging partnerships and exploring new technological frontiers, the marketplace’s largest retail and eCommerce companies appear to be constantly reshaping their strategies to maintain a competitive edge.

Walmart’s Supplier Negotiations Amid Looming Tariffs

In anticipation of potential tariffs that could disrupt supply chains and inflate costs, Walmart has reportedly been lobbying its suppliers to reduce prices. Despite discussions with the Chinese government and warnings of potential retaliation, the retail giant has allegedly approached suppliers in China with requests to cut prices by as much as 10% per tariff round. This proactive measure aims to preserve Walmart’s reputation for low prices even amid rising economic pressures. 

These negotiations come at a time when tensions between the United States and China continue to cast uncertainty over international trade. Walmart’s strategic response underscores its dedication to maintaining cost competitiveness, even if it requires pushing suppliers to absorb part of the economic burden. It is a high-stakes gamble aimed at securing price stability for its vast customer base.

Forging New Partnerships and Capitalizing on Buy Now, Pay Later Trends

Walmart’s ambitions extend beyond price negotiations. The company is actively exploring new avenues to enhance customer experience and broaden its financial ecosystem. In a significant move, Walmart has reportedly partnered with Klarna, a leading buy now, pay later (BNPL) service provider, offering $15 million in warrants as part of the deal.

This partnership highlights Walmart’s recognition of the growing popularity of flexible payment options. Klarna’s BNPL model appeals to consumers who prefer deferred payment structures, particularly amid inflationary pressures that strain household budgets. By integrating Klarna’s services into its ecosystem, Walmart aims to appeal to a broader demographic and enhance the shopping experience for value-conscious customers.

Read more: Shopping Tools in Focus for Amazon and Walmart

Amazon’s Technological Pursuits and Expansive Vision

Not to be outdone, Amazon continues to demonstrate its technological prowess with new innovations designed to enhance its market dominance. Recently, the eCommerce giant unveiled an AI-driven agent capable of autonomously shopping and placing orders. This tool promises to streamline the customer journey by anticipating user needs and optimizing the purchasing process through predictive analytics.

Additionally, Amazon has reached a resolution with Nokia over a global patent dispute concerning streaming technologies. This settlement not only resolves a long-standing legal issue but also allows Amazon to proceed with its ambitions to enhance streaming services, potentially through its various digital platforms.

Project Kuiper: Amazon’s Ambitious Satellite Internet Initiative

Amazon’s broader technological ambitions are also evident in Project Kuiper, its ambitious initiative aimed at providing low-latency broadband internet through a constellation of satellites. Recently, the company announced the successful launch of its first two prototype satellites.

Project Kuiper is a clear response to the growing demand for high-speed internet access in underserved regions. While competitors like SpaceX’s Starlink have already established a substantial presence in the satellite internet market, Amazon’s entry could significantly alter the competitive landscape.

A Bid for TikTok: Amazon’s Play for Social Media Relevance

Perhaps most intriguing is Amazon’s reported bid to acquire TikTok, as the popular social media platform faces potential bans in the United States due to national security concerns. By acquiring TikTok, Amazon would gain a powerful tool for influencing consumer behavior, particularly among younger demographics.

Moreover, such an acquisition could allow Amazon to integrate TikTok’s influential advertising ecosystem into its own retail infrastructure, providing a seamless link between content discovery and direct purchasing. While the deal remains speculative, it highlights Amazon’s willingness to pursue unconventional strategies to remain at the forefront of consumer engagement.

See also: How CFOs Can Manage for Today’s Supply Chain Choke Points

Navigating Uncertainty Through Innovation and Adaptation

The strategic moves by Walmart and Amazon reflect a broader industry trend: the necessity of adapting to changing market conditions through innovation, collaboration and technological advancement. As these retail giants push boundaries and expand their spheres of influence, the retail landscape will likely continue to evolve in unexpected ways.

For Walmart, maintaining cost competitiveness through aggressive supplier negotiations and embracing new financial technologies reflects its enduring commitment to providing value. For Amazon, technological innovation and diversification through projects like Kuiper and potential social media acquisitions signal an ambition to extend its influence beyond retail into broader areas of connectivity and consumer engagement.

Ultimately, the moves made by these companies underscore a common imperative: the need to anticipate change and act decisively to seize emerging opportunities. As tariffs loom, technological breakthroughs accelerate and new partnership models emerge, Walmart and Amazon’s strategic choices will likely serve as blueprints for other industry players navigating an increasingly complex global marketplace.

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