Tariffs aren't going anywhere. If you're in apparel or footwear retail, you already know the story — rising import duties are eating into margins and adding volatility to your bottom line. While short-term hacks like markdowns and price tweaks can give you breathing room, lasting success comes from deeper, strategic moves.
At Brandivio, we believe that resilience is built — not improvised. That’s why we’re highlighting three powerful long-term strategies that can help you not only survive tariff hikes, but thrive despite them:
👉 Dynamic Assortment Ranging
👉 Smarter Sourcing Strategies
👉 Margin-Savvy Assortment Mix
1. 📍 Dynamic Assortment Ranging: Local Inventory, Higher Impact
Sending the same SKUs to every store is easy — but it's also expensive when tariffs hike up the cost of goods. A dynamic assortment strategy localizes your product mix by store cluster, region, or customer segment to maximize sell-through and protect margin.
What to do:
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Use historical, store-level sales data to tailor assortments.
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Eliminate tariff-heavy items from low-performing stores.
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Group stores by demand profiles and customize your offerings.
Why it works:
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Increases sales per square foot
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Reduces costly overstock and markdowns
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Builds local relevance and loyalty
Retailers applying dynamic ranging report 5–10% improvements in store-level sell-through.
2. 🌍 Sourcing Strategy: Build a Tariff-Smart Supply Chain
The fastest way to reduce tariff exposure? Change where you source. A flexible, diversified sourcing strategy allows you to shift production away from high-duty regions and toward tariff-friendly alternatives.
What to do:
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Audit your sourcing by country and category.
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Rebalance future orders to regions with favorable trade agreements.
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Diversify your vendor base to reduce over-reliance on one country.
How to maximize ROI:
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Negotiate contracts with flexibility to shift volume
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Calculate total landed cost, not just factory price
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Leverage duty-free programs and country-of-origin optimization
A diversified sourcing strategy can cut tariff impact by 20–30% in key categories.
3. 🧮 Assortment Mix: Design for Margin, Not Just Style
Not all SKUs are created equal — especially when tariffs enter the chat. A strategic assortment mix means leaning into high-margin, low-tariff products, and pulling back on those draining profit.
What to do:
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Analyze gross margin by category after tariffs.
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Focus on “margin hero” products — high ROI, low duty impact.
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Get design, buying, and finance teams aligned on tariff implications early in development.
Pro Tip:
Track HTS codes for your products — reclassification opportunities could save you real money.
Retailers who optimize their mix by margin and tariff exposure have seen 8–12% increases in gross profit contribution.
🚀 Ready to Future-Proof Your Margins?
You don’t need to choose between margin and growth. With a thoughtful mix of local assortment strategies, sourcing agility, and product mix optimization, you can build a business that flexes with global pressures — not one that breaks under them.
💡 Want the full playbook?
Explore our Tariff Resiliency Matrix and Tariff Strategy ROI for deeper guidance on long-term margin protection.
Ready to take control of your pricing, assortment, and profitability?
Let’s talk. At Brandivio, we help retailers thrive — even in tough times.
