Modern Retail+ Research: How Lalo, Caraway and Boll & Branch Are Preparing for the Holidays in a Year Dominated by Tariffs
As the holiday season approaches, brands are gearing up for what is expected to be another atypical shopping experience. In the second installment of Modern Retail’s monthly executive focus group, leaders from Lalo, Caraway, and Boll & Branch shared their insights on navigating the complexities of this year’s holiday preparations, especially in a climate marked by tariffs and supply chain challenges.
Lalo, known for its high-quality children’s toys, is focusing on transparency and sustainability. With tariffs affecting the cost of imported goods, Lalo’s executives are emphasizing local sourcing as a way to mitigate rising costs. “By working with domestic manufacturers, we can not only control pricing more effectively but also reduce lead times, which is crucial as we approach the busy holiday season,” said Lalo’s CEO. This strategic pivot not only addresses tariff-related price increases but also resonates with consumers who prioritize sustainability. The brand’s commitment to eco-friendly practices is expected to appeal to the growing segment of environmentally conscious shoppers.
On the cookware front, Caraway faces its own set of challenges. The company, which specializes in non-toxic ceramic cookware, is grappling with the implications of tariffs on their imported materials. Caraway’s Chief Operating Officer noted, “We have had to reassess our supply chain strategies. This year, we are investing in more robust inventory management systems to ensure that we can meet holiday demand without succumbing to the pressures of tariff hikes.”
Caraway’s focus on direct-to-consumer sales has proven beneficial, as it allows the brand to maintain control over pricing and customer experience. By utilizing data analytics, Caraway is identifying trends in consumer preferences, allowing them to tailor their holiday offerings. For instance, the brand is launching limited-edition colors for their cookware sets, a strategy designed to create urgency and exclusivity—two key factors that drive holiday sales.
Boll & Branch, a leader in luxury bedding and home goods, is also navigating the turbulent waters of tariffs. The company’s co-founder shared insights on their approach to the holiday season amidst these challenges. “We’ve focused on enhancing our online presence and refining our digital marketing strategies. With more people shopping online than ever before, it’s essential to create a seamless and engaging customer journey,” they explained.
To prepare for increased online traffic, Boll & Branch has invested in their website’s functionality and user experience. Additionally, they are ramping up their social media campaigns to target younger consumers who are increasingly looking for quality products for their homes during the holiday season. With the shift in consumer behavior, Boll & Branch’s strategy underscores the importance of a strong digital footprint during peak shopping times.
The common theme among these brands is adaptability. Each company is leveraging its unique strengths to navigate a landscape that is increasingly shaped by tariffs and changing consumer habits. As the holiday season nears, Lalo, Caraway, and Boll & Branch are not only reacting to external pressures but are also proactively shaping their offerings to meet consumer demands.
Moreover, the executives discussed the importance of fostering customer loyalty during these uncertain times. “We are investing in customer service training and personalized marketing campaigns aimed at building long-term relationships with our buyers,” the COO of Caraway remarked. This customer-centric approach is vital, as it can lead to repeat purchases and brand advocacy—a critical component for success in the competitive retail arena.
As the holiday shopping season approaches, these brands are also aware of the importance of timing. With supply chain disruptions and potential delays, planning ahead is crucial. “We are encouraging our customers to shop early to avoid potential shipping delays,” Boll & Branch’s co-founder noted. This proactive communication strategy not only sets realistic expectations but also encourages early purchases, helping to alleviate some pressure on fulfillment systems.
In conclusion, this holiday season stands to be particularly challenging for retailers, but Lalo, Caraway, and Boll & Branch are taking strategic steps to prepare. By focusing on local sourcing, enhancing digital experiences, and fostering customer loyalty, these brands are positioning themselves for success amidst the complexities introduced by tariffs. It will be fascinating to observe how their strategies unfold during this pivotal shopping period.
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