The trend: Retail layoffs have surged 249% in the first seven months of the year, according to Challenger, Gray & Christmas—and more cuts are likely to come as tariffs squeeze margins.

The latest examples:

• Nike is planning its second round of layoffs this year as part of CEO Elliott Hill’s restructuring push. In February, the retailer cut about 1,500 jobs, or 2% of staff.
• Kroger is eliminating “a meaningful number” of US administrative roles, The Wall Street Journal reported, after Bloomberg said the grocer planned to lay off nearly 1,000 corporate employees.
• Shiseido Americas is cutting staff as sales plunge, hit by company missteps and weakening demand.
• Estée Lauder is shedding up to 7,000 jobs, restructuring to address slower China growth and shifting US beauty retail trends.
• Best Buy has not disclosed headcount reductions, but reported a Q2 $114 million restructuring charge tied to layoffs.

Why is this happening? Tariffs are eroding margins, forcing retailers to cut costs. With trade pressures likely to persist, companies face a costlier new normal and are operating leaner.

• Consumers remain resilient for now—spending rose 0.5% MoM in July—but that strength is likely to fade as companies from Procter & Gamble to Williams-Sonoma raise prices to offset higher costs.
• Inflation is edging higher. The core personal consumption expenditures price index, which excludes food and energy, climbed to 2.9% in July, underscoring how tariffs are filtering through to consumers.