Before you do your holiday shopping, retailers do their own. They’re looking for the best deals from suppliers. China devalued its currency, the yuan, to make its stuff even cheaper. That could save U.S. retailers a little money.
“I think most retailers are actually just going to enjoy the savings that they get and pass them straight to the bottom line,” said Bryan Gildenberg, chief knowledge officer for Kantar Retail.
Their bottom line, not ours. But other U.S. retailers are abandoning China as their suppliers cut corners and workers, struggling to make money in a weaker Chinese economy. We may see fewer made-in-China labels as retailers decide they should go elsewhere.
“And now you look at other alternatives, southeast Asia, Mexico or other places,” said Ted Vaughan, a partner and retail analyst at BDO USA.
Those other places even include the U.S. Vaughan said he’s seeing more home goods made domestically, and not just things like throw pillows but big stuff, like cabinets.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Donate now to get almost any thank-you gift.