Declining US consumer activity forcing brands to shift their focus to Europe

Declining US consumer activity forcing brands to shift their focus to Europe

Retailers and manufacturers are shifting their focus to the European market due to fears of a significant decline in consumer activity in the US. The Trump administration's imposition of 10% tariffs on all imported goods has already led to higher prices and lower consumer confidence in the US.

Hugo Boss CEO Daniel Grieder confirmed the negative expectations when he reported a marked deterioration in consumer demand in the first quarter due to economic uncertainty. Many companies, including Mattel, have announced plans to raise prices to offset the new tariffs, which could further reduce purchasing power.

David Schroeder of Zalando has noticed an increasing number of inquiries from brands looking to mitigate potential losses in the US by expanding in Europe. Growing consumer uncertainty in the United States is forcing companies to seek alternative markets with less significant tariff pressure.

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