Consumers should be stocking up on essentials, particularly in the home goods category, as those items are expected to see “noticeable” price increases in early 2026, according to Wells Fargo.
Retailers “have largely tried to either hold or modestly increase prices this holiday season across categories, with many offering targeted promotions and even deeper discounts on select items,” according to Lauren Murphy, managing director of Wells Fargo Retail Finance.
In early 2025, many retailers “strategically front-loaded inventory purchases” before they were faced with additional tariffs.
Those duties are expected to raise 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 product they had on hand by 14%.
But in early 2026, the amount of inventory still in transit from overseas suppliers is projected to rise by 62%.
Home goods retailers in particular rely heavily on imports, leaving little room to absorb rising tariff costs, so price hikes hit faster than in categories like apparel.
Home retailers have already begun implementing strategic price increases, which means consumers could expect to see even higher prices in the coming months, Murphy said.
Murphy said apparel may still see increases, but its lower base price softens the impact. Comparatively, even a 10% jump for big-ticket items can price out buyers, she warned.
She urged shoppers eyeing things like major furniture purchases to make them now because it could mean “significant savings before prices increase in early 2026.”
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