Walmart, Costco Likely To Fare Well Under Tariffs, UBS Says

23 hours ago 1

Sarina Trangle

Thu, Apr 3, 2025, 10:15 AM 2 min read

Walmart and Costco apt volition beryllium capable to pull customers who request groceries, portion negotiating competitory prices with vendors amid caller tariffs, UBS analysts said.
Consumers volition inactive request essentials, which whitethorn bode good for different supermarket chains and auto-parts companies, UBS added.
Off-price retailers, specified arsenic T.J. Maxx and Burlington Stores, are besides comparatively well-positioned for heightened tariffs, the slope said.

Big retailers with market sections, specified arsenic Walmart (WMT) and Costco (COST), whitethorn beryllium champion positioned to withstand the latest circular of tariffs, UBS analysts said.

Tariffs unveiled Wednesday impact dozens of countries, which means retailers can't easy bypass import taxes by relocating their accumulation facilities, UBS wrote successful a probe enactment Wednesday. As retailers respond by raising prices, consumers are slightest apt to chopped backmost connected essentials similar groceries, the analysts said.

Large operators, specified arsenic Walmart and Costco, volition apt payment due to the fact that they person the standard needed to negociate with vendors and connection customers competitory pricing, UBS said.

"These retailers volition apt beryllium capable to widen their terms gaps with their competitors wrong categories deed by tariffs," the enactment said. "Ultimately, the longer that the tariffs persist, the much apt it is to thrust further consolidation successful retail. This volition besides payment those with standard and beardown positioning."

Costco shares roseate astir 1% precocious Thursday, portion Walmart shares were disconnected astir the aforesaid amount.

Other companies UBS expects to execute good see the supermarket chains Kroger (KR), Albertsons (ACI), and Sprouts Farmers Market (SFM), and companies selling car parts that consumers request to support their cars, specified arsenic Autozone (AZO) and O'Reilly Automotive (ORLY).

Off-price retailers Burlington Stores (BURL) and TJX Cos. (TJX), the genitor institution of TJ Maxx and Marshalls, whitethorn besides beryllium omniscient investments, UBS said, adding that these retailers volition payment if the broader manufacture can't determination arsenic overmuch merchandise owed to higher prices.

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