Understanding the Impact of Tariffs and Inflation on Retail
As tariffs and persistent inflation continue to reshape the retail landscape in the United States, brands face unprecedented challenges. ShopLiftr, a digital advertising platform, has emerged as a vital resource for retailers navigating these turbulent waters. By leveraging real-time data, the platform empowers retailers and brands to effectively engage price-conscious consumers by delivering relevant promotions at the right time and place.
The Retail Landscape Under Pressure
The current economic climate is undeniably challenging, particularly for the grocery sector. A staggering $300 billion worth of goods from China remains under Section 301 tariffs, contributing significantly to rising costs for retailers. In 2025, grocery input costs have surged by 4.1% year-over-year, and grocery prices have subsequently escalated by 2.7%. Meanwhile, restaurant prices have soared even higher, increasing by 4.4%.
Retailers are feeling the strain; 41% have reported heightened inventory costs due to tariffs, leading to tighter profit margins. Concurrently, consumers are adapting to this new reality—52% of U.S. grocery shoppers have turned to private label products, and 45% are scouring for deals and digital coupons to mitigate higher prices. Notably, 77% of consumers have switched brands or stores seeking better value in the past year alone.
Agility: A Necessity for Survival
In this fast-changing environment, agility is not just beneficial; it's essential. Each week brings potential shifts—from new tariffs to unforeseen input cost changes—that can drastically affect pricing, promotions, and shopper behaviors. Traditional marketing and advertising frameworks are ill-equipped to manage such volatility, as they were designed for predictability.
Enter ShopLiftr. Unlike legacy systems, ShopLiftr harnesses real-time data to provide a responsive marketing solution that adapts to ever-changing consumer needs.
Real-Time Data Insights
ShopLiftr's platform is tailored to the modern retail climate, enabling brands to:
- - Launch and Optimize Offers Instantly: Retailers can create and adjust promotions swiftly, achieving hyper-local activation tailored to specific regions and neighborhoods.
- - Target with Pinpoint Accuracy: Utilizing up-to-the-minute data, the platform ensures promoted offers align with shoppers' behaviors and local price sensitivities in real time, allowing for precise geotargeting.
- - Measure Effectively: ShopLiftr provides robust measurement capabilities, allowing brands to quantify true incremental sales growth rather than simply tracking sales shifts. Insights can be broken down to city or category levels.
Furthermore, the platform is versatile, capable of operating across any retail partner—effectively future-proofing promotional strategies against ongoing supply chain disruptions and tariff impacts. Retailers that have employed ShopLiftr's data-driven solutions have reported significant gains; for instance:
- - A leading national discount retailer experienced an 11% year-on-year sales increase alongside an impressive return on ad spend (ROAS) of $81, all amid category-wide sales declines.
- - A major East Coast supermarket effectively redirected its creative assets towards more impactful strategic initiatives due to ShopLiftr’s automated capabilities.
Partnership and Value-Driven Promotions
The importance of engaging with local consumers through value-driven promotions has never been more critical. Brian Dunphy, the Chief Commercial Officer of Starlite Media, recognizes the significance of real-time data in executing effective advertising strategies. During these tough economic times, where consumers are vigorously seeking value, the ability to amplify local promotions could define a brand’s success.
With ShopLiftr, brands can easily:
- - Execute scalable real-time, hyper-local digital offers—ensuring they reach shoppers precisely when and where they are.
- - Establish true incremental sales lifts instead of simply measuring sales shifts.
- - Adapt promotional strategies across diverse channels and retail environments, allowing for optimal reach.
- - Scale personalized messaging without the operational headache of complexity.
Preparing for Future Disruptions
As tariffs, inflation, and ongoing supply chain uncertainties loom, it's crucial for retailers to forge strong connections with value-driven consumers. ShopLiftr stands ready to help businesses step ahead of market challenges and solidify their standing amid shifting consumer expectations.
To see how ShopLiftr can revolutionize your promotional approach in these challenging times, visit
ShopLiftr for a custom demonstration. Additionally, those attending the Shopper Marketing Summit in Chicago are encouraged to visit ShopLiftr's booth for insights on leveraging data to power impactful promotions everywhere.
About ShopLiftr
ShopLiftr is revolutionizing the advertising landscape by providing a retail-agnostic platform that connects consumer packaged goods (CPG) brands and retailers with shoppers through real-time hyper-local advertising solutions. With a focus on data-driven dynamic display, video, and digital out-of-home (DOOH) ads, ShopLiftr enhances in-store sales while maximizing returns on investment, simplifying the consumer’s purchasing journey. Powered by cutting-edge technology and designed with inspiration in mind, ShopLiftr seeks to drive sales and improve engagement for its partners.