US clothing retailers test rich shoppers with new pricing strategy as tariffs persist
The Levi’s consumer largely earns $100,000 and over. And that consumer we are seeing is generally resilient,” the brand’s chief financial officer, Harmit Singh, said. Anselm – stock.adobe.com
NEW YORK — Apparel brands like Levi’s and Aritzia are leaning into full-price sales, testing how much affluent consumers are willing to spend—even as tariffs and a cooling economy weigh on lower-income shoppers.
So far, the results are promising.
Levi Strauss raised prices on select items in July and saw no dip in demand, according to Chief Financial Officer Harmit Singh, speaking Wednesday at the Goldman Sachs Global Retailing Conference in New York.
“We’re going all-in on full-price sales like never before,” Singh said. “The typical Levi’s customer earns over $100,000, and that segment continues to show strong resilience.”
Aritzia, a Canadian retailer known for its “accessible luxury” appeal, reported similar trends. After raising prices earlier this year, U.S. shoppers have continued to spend, said CFO Todd Ingledew. The brand—popular with celebrities like Beyoncé, Bella Hadid, and Pamela Anderson—plans to avoid deep discounts this holiday season, offering just a week of Black Friday deals before returning to full prices after Cyber Monday.
“With each passing week, we gain more confidence in the consumer’s staying power,” Ingledew said.
While many Americans are feeling squeezed by rising costs linked to tariffs, higher-income consumers appear largely unaffected. Stock market gains, low credit card debt, and strong household balance sheets have helped shield them from broader economic pressures. Moody’s Analytics estimates the top 10% of earners—those making $250,000 or more annually—now account for half of all U.S. consumer spending.
More Brands Embrace Full-Price Strategy
Other major retailers like Ralph Lauren, Under Armour, and Abercrombie & Fitch are also pushing full-price sales.
“We’ve shifted toward a more premium, full-price customer base, and that’s been a strong strategy as our core consumer remains resilient globally,” Ralph Lauren CEO Patrice Louvet said in August.
Under Armour is experimenting with price increases on new products targeted at loyal shoppers, such as its $45 “Self-form” hat and popular heat gear line. CEO Kevin Plank said the brand sees pricing power with its most engaged customers.
Retailers now also have better tools to manage pricing. “The old method was blanket discounts—25% off everything,” said Kate McShane, managing director at Goldman Sachs. “Now, if it’s 60 degrees in New York, they can just mark down North Face fleece jackets there for a few days, and keep full prices elsewhere.”
Tariffs Still a Factor, But Discounts Less Likely
Despite the pressure from tariffs, many companies have already absorbed those added costs and are reluctant to return to the heavy discounting of previous years. Seasonal events like “Summerween” and back-to-school sales were launched at full price before promotions were used selectively, noted Alison Furman, a retail consultant at PwC.
“Retailers are testing how far full-price strategies can go,” Furman said. “If something doesn’t sell, they now have the flexibility to pivot quickly with targeted promotions—maximizing margins without slashing prices across the board.”
As the holiday season approaches, expect fewer blanket sales and more strategic pricing—at least for shoppers in higher-income brackets.
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