Our Report: Target and Walmart Implementing Massive Price Increases, Employees Raise Concerns
We’ve been looking into reports of significant price increases happening at major retailers like Target and Walmart, and what we’ve found is concerning. Even employees are speaking out, describing the hikes as “kind of scary”. While retailers warned months ago that prices might rise, the extent of these increases is now becoming clear.
We’ve seen outrageous examples that simply don’t seem justified. One particularly shocking case is a Heyday USB-C cable at Target. This cable, which was previously priced at $9.99, has been raised to $17.99. That’s an 80% increase. What’s even more frustrating is that these Heyday cables are Target’s in-house brand, typically sourced from China and marked up. We know you can find similar USB-C cables on Amazon or eBay for much less, often under $5 or $6. The idea that a cable that likely costs pennies to make in bulk is selling for $17.99 is mind-blowing. This particular price spike is being attributed to the latest tariffs.
Retailers have been quick to blame these price hikes on tariffs, especially those linked to trade policies. Target’s CEO, Brian Cornell, even warned customers months ago about potential price increases on items like groceries that cross borders, citing possible 25% tariffs on Mexican and Canadian products.
However, we think blaming tariffs is only part of the story – or even “nonsense” in some cases. We’ve seen reports suggesting some of these tariffs were paused. Furthermore, the cables already on the rack were acquired at the lower price, so the tariff explanation for that specific price jump doesn’t hold up.
The real issue, in our view, seems to be corporate greed and a focus on maintaining “super high profit margins”. Companies have had months to find alternative suppliers, including American manufacturers, who wouldn’t be affected by tariffs. We’ve seen that there are many US-based companies making USB cables, like those by Cables to Go, ASU and BYC, Space Cables, Dream Cables, and Swirl Cables. Target choosing not to buy from them tells us a lot.
These companies have more than enough margin to absorb costs instead of just passing them directly to us, the consumers. Target’s margin on a Chinese USB cable could be anywhere from 500% to 1,000%. Even with a 25% tariff, they could still make a massive profit, perhaps only 475%, but that’s not what they’re doing.
Walmart, despite reporting a strong first quarter and record profits, has also delivered “grim news” for shoppers, warning that none of its customers will escape the hikes on a wide range of items. The chain’s CFO expressed concern, stating the “magnitude of these increases is more than any retailer can absorb”. We believe “that’s just not true”.
We’ve also seen former Walmart CEO Bill Simon criticize the current leadership, pointing out that the company grew its gross profit margin in the US by 25 basis points this quarter. He suggested this gave them “room” to manage any tariff impact. President Trump has also publicly called on Walmart to “Eat the tariffs and not charge valued customers anything,” noting their billions in profit.
Instead of absorbing costs, companies are prioritizing protecting their profits and store inventories by “just screwing customers over”. This includes things like Walmart bringing back the basket fee, which disproportionately affects lower and fixed-income individuals, simply because they “just want more money”.
Ultimately, while tariffs might play a role in some price changes, we believe that the significant price increases we are seeing, especially on items like the USB cable, are largely driven by retailers choosing to maintain or even expand their profit margins rather than absorb costs. Don’t let them tell you it’s exclusively because of tariffs.
