The situation: It’s no coincidence that “uncertainty” is the go-to refrain on retailers’ Q1 earnings calls. Merchants are walking a tightrope as they navigate the Trump administration’s unpredictable trade policies and increasingly price-sensitive consumers. With tariffs in flux, margins under pressure, and little visibility into what lies ahead, strategic agility has become essential.

Despite the volatility, several major retailers—including Dick’s Sporting Goods, Walmart, Williams-Sonoma, and Home Depot—have held firm. Each reaffirmed its 2025 guidance, a sign of operational resilience and clarity that stands out in a treacherous macro environment.

The playbook: A close look at how these retailers are weathering the storm reveals a set of shared strategies that offer a roadmap for managing uncertainty.

• Diversify the supply chain: With 10% near-universal duties, a 51.1% average tariff rate on imports from China, and looming additional levies on the EU and elsewhere, retailers are minimizing risk by diversifying their sourcing. Home Depot, for instance, sources over half of its assortment domestically; no single non-US country is expected to account for more than 10% of its supply within a year—a deliberate hedge against tariff volatility.
• Collaborate with vendors: Retailers are also leaning on suppliers to absorb costs and engineer creative workarounds. Walmart CEO Doug McMillon cited one supplier that replaced aluminum with fiberglass in certain products to sidestep tariffs—an example of how material flexibility and design tweaks can yield real savings.
• Identify cost efficiencies: Cost discipline is another key lever. Williams-Sonoma unlocked 120 basis points of savings through supply chain improvements and made targeted cuts to SG&A expenses. These moves helped offset external pressures without compromising long-term strategy.
• Strategically raise prices: Retailers are selectively implementing price increases. Walmart’s widely reported price hikes are anything but across the board as the retailer is holding prices steady on items like Mother’s Day flowers at Sam’s Club, while adjusting prices on more discretionary goods. Dick’s Sporting Goods CEO Lauren Hobart echoed this approach, saying the company is “constantly assessing our pricing down to the item level,” guided by demand and profitability.

Our take: In an environment defined by policy whiplash and consumer caution, success hinges on adaptability. Retailers that diversify sourcing, collaborate closely with vendors, streamline operations, and take a surgical approach to pricing are proving that flexibility—not just scale—is key to resilience.

Go further: Check out our tariff coverage, including our reports on the Impact of Tariffs on US Businesses and Impact of Tariffs on Digital Advertising.