Consumers should stock up on basic necessities, especially in the household goods category, as these items are expected to see a “noticeable” price increase in early 2026, Wells Fargo said.
Retailers “have largely attempted to hold or modestly increase prices across all categories this holiday season, with many offering targeted promotions and even deeper discounts on select items,” said Lauren Murphy, managing director of Wells Fargo Retail Finance.
By early 2025, many retailers had “strategically advanced their inventory purchases” before facing additional tariffs.
THE BEST CYBER MONDAY DEALS TO GET NOW: UP TO 70% OFF APPLE TECH, LEVI’S DENIM AND MORE
Consumers should stock up on basic necessities, especially in the household goods category, as these items are expected to see a “noticeable” price increase in early 2026, Wells Fargo said. (Justin Sullivan/Getty Images)
These duties are expected to increase the cost of new shipments, which retailers will likely pass on to consumers in 2026, Murphy warned.
From May to September, retailers increased the amount of products they stocked by 14%. But by early 2026, the amount of inventory still in transit from overseas suppliers is expected to increase by 62%.
EMPTY BOXES AND MISSING PARTS: SHOPPERS MAKE OUTSIDE RETAIL RETURN POLICY
Household goods retailers in particular rely heavily on imports, leaving little room to absorb rising tariff costs. (Rober Solsona/Europa Press via Getty Images)
Household goods retailers in particular are heavily reliant on imports, leaving little room to absorb rising tariff costs, causing price increases to hit faster than in categories like apparel. Home retailers have already started implementing strategic price increases, meaning consumers can expect even higher prices in the coming months, Murphy said.
AMAZON IS GIVING SOME CUSTOMERS REFUNDS FOR RETURNS MADE YEARS AGO
Murphy said apparel could still rise, but the lower base price will soften the impact. By comparison, even a 10% increase on expensive items could price out buyers, she warned.
A customer shops for furniture at an IKEA store on September 26, 2025 in Emeryville, California. (Justin Sullivan/Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
She urged shoppers eyeing things like big furniture purchases to make them now as it could mean “significant savings before prices rise in early 2026.”
