By Katherine Hamilton and Dean Seal

Retailers are walking a tightrope to convey they're looking to raise prices without actually saying they're raising prices.

Best Buy, Target and others say they are "adjusting" prices and making strategic decisions around promotions.

Executives at Deckers Outdoor, the footwear company behind Ugg boots and Hoka sneakers, are "flexing the pricing power" of its brands.

Ernie Herrman, chief executive of T.J. Maxx owner TJX Cos., said last week it would shift its prices in tandem with traditional retailers, while trying to avoid the word "price."

"If retails do move out there, we will adjust our retails to preserve that gap," he said. "That could mean they go up on certain items."

The verbal gymnastics underscores a dual message executives want to send as they confront higher costs from tariffs, according to analysts. Companies are aiming to reassure investors they are taking action to mitigate new costs, all while cushioning the blow for cost-weary consumers and avoiding backlash from the White House.

And candor has come with blowback.

Walmart, the world's largest retailer by sales, said earlier this month that tariffs would force the company to start raising prices soon: "The higher tariffs will result in higher prices," Chief Executive Doug McMillon said.

The frankness drew the ire of President Trump. "EAT THE TARIFFS," he said in a social media post directed at Walmart.

Retailers are doing all they can to avoid being on the receiving end of Trump's megaphone, said Neil Saunders, a managing director at GlobalData Retail.

"The White House has decided that it should aim its tanks at companies that do speak out," he said. "Retailers don't want to be drawn into that."

Many companies are also wary of scaring off consumers, said Sonia Lapinsky, an adviser to retail executives at AlixPartners. Americans are still recovering from a spike in inflation that sent retail prices up in recent years. Dismal consumer sentiment surveys also indicate shoppers are unwilling to increase discretionary spending.

"Any talk of pricing can not only shake the market, it can shake the consumer," Lapinsky said. "If they hear about price increases, it might just prevent them from going in the store at all."

On investor calls this month, executives used a barrage of modifiers to minimize the shock of price increases.

Macy's management referred to their pricing strategy as "surgical." Urban Outfitters plans to make their hikes "gently and sparingly." Deckers executives said any price increases will be "strategic, selective and staggered."

Another reason why executives are giving themselves wiggle room: the tariff situation remains in flux. Earlier this week, the U.S. Court of International Trade ruled that the president didn't have the authority to impose sweeping tariffs. A federal appeals court put the ruling on hold as the White House appeals and considers other options to enact its trade policy.

When asked Thursday about how much Best Buy would have to raise its prices to absorb tariff costs, Chief Executive Corie Barry said she couldn't provide a "static number" as proposed rates continue to fluctuate.

"This is such an incredibly fluid situation," Barry said on a call with analysts. "Trying to snap the line at any given point in time is almost impossible."

Raising prices is a last resort, according to executives at several companies.

Costco, for instance, is pulling orders forward and moving some sourcing to reduce its tariff exposure and avoid sharp price increases. Other retailers have outlined similar strategies.

Still, higher prices are likely in the cards.

Lapinsky said many companies already mapped out steps for raising prices on certain goods when they shipped extra inventory from Asia ahead of higher tariffs.

"The decision was already made," she said. "The consumer is going to see a lot of pressure on price."

Write to Katherine Hamilton at katherine.hamilton@wsj.com and Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 30, 2025 13:49 ET (17:49 GMT)

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