Your Money Minute – “Here Come Even Higher Prices” (January 16, 2026)

Overview

In this concise, actionable episode of Your Money Minute, host Jessica Ettinger addresses the rising cost of goods as a wave of new tariffs hits retailers in the first quarter of 2026. The episode breaks down why consumers should brace for higher prices—and shares insights on how retailer strategies and consumer behavior are evolving as a result.

Key Discussion Points and Insights

Higher Prices Are Coming Soon

• Tariffs Drive Up Costs:

  • Jessica Ettinger opens with a warning: higher prices on a broad range of goods will soon hit consumers due to the impact of new tariffs.
    • “You ready for higher prices on all sorts of items you want to buy?” (Jessica Ettinger, 00:03)

• Price Increases Centered in Q1:

  • Stacy Widlitz, from SW Retail Advisors, points out that the real effect of tariffs on consumer goods will be most strongly felt in the first quarter (Q1) and into Q2 as new, more expensive inventory arrives.
    • “Q1, that's when the cost of goods increase is really going to hit us.” (Stacy Widlitz, 00:08)
    • “Once the replenishment comes in, when the tariffs really hit in Q1 and Q2, that inventory is going to be more expensive.” (Stacy Widlitz, 00:34)

Retailers’ Strategies: Fewer Discounts, Price Rises

• Inventory Phases:

  • Much of the merchandise sold during the holidays was bought before tariffs took effect, so prices hadn’t yet reflected the increased costs—and deep discounts were rare.
    • “Turns out much of what was sold into the holidays was pre-tariff merchandise, and much of it was not discounted.” (Jessica Ettinger, 00:43)

• Retailers Prepare for Impact:

  • Retailers had been running down inventory bought ahead of tariffs. As new shipments arrive, built after tariffs, shoppers will see higher prices and even fewer deals.

Consumer Behavior: ‘Choiceful’ and Cautious

• Shoppers are More Selective, Still Spending:
  • Consumers are described as “cautious” yet willing to pay full price, given the scarcity of discounts. The word “choiceful” is gaining currency among CEOs to describe careful, deliberate shopping in this environment.
    • “Every CEO we've heard from that reported Q3 earnings, the consumer is cautious. Yet the consumer is out there and they're spending... on full price because... there are fewer discounts out there.” (Stacy Widlitz, 00:50)
    • “CEOs have been using the word choiceful to describe consumers... people may be even more so as higher prices appear...” (Jessica Ettinger, 01:02)

Notable Quotes & Memorable Moments

• On Price Increases and Inventory:
  • “Retailers are holding back on discounts and increasing prices as tariffs... impact starts rolling in.” (Stacy Widlitz, 00:12)
• On Consumer Mindset:
  • “The consumer is cautious. Yet the consumer is out there and they're spending... on full price because... there are fewer discounts out there.” (Stacy Widlitz, 00:50)
  • “CEOs have been using the word choiceful to describe consumers.” (Jessica Ettinger, 01:02)

Timestamps for Key Segments

• 00:03 – Introduction: Warning about rising prices
• 00:08 – Q1 is when increased costs will show up in stores (Widlitz)
• 00:19 – Expert insight: brace for retailer price hikes
• 00:29 – Tariffs’ effects: inventory cycles and price passthrough (Widlitz)
• 00:43 – Holiday goods priced pre-tariff, discounts limited
• 00:50 – Consumer behavior: caution, full-price buying (Widlitz)
• 01:02 – The new “choiceful” consumer mindset

Takeaway

Expect higher prices and fewer discounts, especially in the first half of 2026 as tariffs raise retailers’ costs. Consumers are adapting by being “choiceful”—more selective but still willing to spend where it matters most. Stay tuned to your local market and adjust spending strategies accordingly.