Headlines

Here’s How Trump’s Election Could Affect Retail

Published

7 years ago

November 9, 2016

Consumers don’t like surprises.

After Donald Trump’s surprise win in the presidential election, you’re probably wondering how the political climate might affect retail sales — particularly in your own business.

Forbes contributor Richard Kestenbaum says it could come down to two issues: “paralysis” and higher costs. Kestenbaum’s firm, Triangle Capital LLC, focuses on M&A and capital for companies in retail, accessories and other industries.

As he sees it, Trump’s win will cause people to clamp down on their spending for a while, simply because they want to see how things go. That applies to both larger and smaller purchases.

“The markets hate surprises and consumers do too,” Kestenbaum writes.

He also foresees the costs of labor and imported products rising. That would mean more pressure for retailers to charge more for their products.

Kestenbaum explains that “consumer products, particularly those imported, will be under pressure to increase prices when there is more pressure for tariffs on imports and less labor to load, move and sell consumer products.”

Read more at Forbes

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