Walmart, Target Warn of 'Massive' Price Hikes, Empty Shelves
The CEOS of Walmart and Target are warning that store shelves could be empty in weeks unless trade policy changes soon.
According to an April 26, 2025, report by Axios, the CEOS said in a private meeting on Monday, April 21 that U.S. tariffs could mean "massive product shortages and price spikes.
CBS News reported that the Walmart and Target CEOS also warned that tariff policy could "disrupt supply chains and lead to empty shelves in the coming weeks."
The CEOS, who were joined by the head of Home Depot, "are reportedly pressuring suppliers to absorb extra costs," Axios reported.
"We have decades of experience" with buyers, plus longstanding supplier relationships," Walmart CEO Doug McMillon told reporters earlier in April, according to Axios.
The head of Target, Brian Cornell, told CNBC in early March that Target "relies heavily on Mexican produce during the winter months, and the tariffs could force the company to raise prices on fruits and vegetables as soon as this week."
But, according to Supermarket News, the tariff war with China is expected to "ramp down," which would change things for the retailers, who may have gotten their message across.
According to Supermarket News, both Target and Walmart hope their private meeting will improve the outlook, with Target saying in a news release that the meeting with productive and "we remain committed to delivering value for American consumers."
Many other retailers are also concerned about the impact of tariffs, Axios reported.
According to Axios, "many retailers stocked up on inventory in the first months of 2025, realizing that a storm was coming," but the inventories are depleting "quickly."
Retail Dive reported that the retailers 'inventories are poised to dwindle quickly."