Retailers and the Trump era
Courtney Marabella from Modern Retail here.
There was a lot to cover in the world of retail this week, much of it relating to changes being brought about by the Trump administration. Additionally, we took a look at how some retailers are eying the brick-and-mortar space being left by bankrupt companies like Big Lots and Party City.
You can check out this week's top stories below!
How Trump’s suspension of de minimis will impact e-commerce companies
The U.S. trade rule known as de minimis has been instrumental in the rapid growth of “direct-from-China” e-commerce companies like Temu and Shein. But President Donald Trump’s new tariffs against China, Canada and Mexico pose an existential threat to imports shipped directly to U.S. consumers.?
On Saturday, Trump signed three executive orders imposing tariffs on the country’s three biggest trading partners. Effective Feb. 4, the U.S. will impose 10% on Chinese goods. Imports from Canada and Mexico were also supposed to be hit with a 25% tax, but the U.S. agreed on Monday to delay tariffs on the countries by a month.
Retailers are eager to take spaces left by bankrupt chains like Big Lots and Party City
As chains like Big Lots, Joann and Party City pursue bankruptcy, real estate executives from Burlington to Planet Fitness and Barnes & Noble are champing at the bit to take their empty spaces.
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2024 was a banner year for retail bankruptcies. Coresight Research tracked 51 major retail bankruptcies during the 2024 calendar year, up from 25 in 2023, opening up millions of square feet of real estate as a result. Gordon Brothers is now marketing hundreds of Big Lots locations for lease transfers to other retailers. A&G Real Estate Partners said on Jan. 3 it plans to auction off 695 Party City locations, targeting gyms and entertainment tenants, dollar stores, local specialty retailers, furniture stores and medical office clinics as potential tenants.
U.S. apparel manufacturers brace for the Trump era
As U.S. President Donald Trump imposes new tariffs on Mexico, Canada and China, manufacturers and brands that already make products in America are seeing increased demand for their services and input.
Ferrara Manufacturing, whose garment factory is in New York City, is hearing more from potential clients these days, as it did back during the first Trump administration, it told Modern Retail. Ferrara Manufacturing mostly makes high-end women’s clothing and has worked with Ralph Lauren, Calvin Klein and Donna Karan. Meanwhile, brands that produce products domestically — such as sportswear brand American Giant — are being asked for advice on how to make it all work.
That’s all for today, but thanks as always for reading and subscribing. What else is on your mind this week? Let us know in the comments!
– Courtney Marabella