At Home’s ‘diverse supply chain’ could offset tariff impact

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At Home’s ‘diverse supply chain’ could offset tariff impact

By Deena M. Amato-McCoy - 07/17/2018
At Home Group is making plans to ease the impact of the proposed tariffs on goods imported from China.

The value-priced home décor retailer believes that a portion of its home furnishings and accent décor sourced from China would be impacted by the proposed tariffs. However, the company does not believe the tariffs would have a material impact on its fiscal 2019 and fiscal 2020 financial results.

To offset the impact of the proposed tariffs, At Home plans to continue working with its product partners and leveraging its “flexible supply chain.”

“At Home has an efficient and diverse supply chain with a significant number of product partners in China, the United States, Hong Kong, Belgium, Taiwan, India and Vietnam, as well as more recent partnerships in Turkey, Indonesia, Mexico and Malaysia,” according to the company.

At Home has also established a direct sourcing function to increase direct factory purchases rather than purchasing through agents or trading companies. “This initiative represents an opportunity to improve international sourcing flexibility, reduce product costs, increase supply chain diversity and broaden the company's access to unique and quality products,” the company reported.

Additionally, with an average selling price of less than $15 and an average basket of approximately $65, At Home said price adjustments could be made “without materially affecting its overall customer value proposition.”

Earlier this month, the Trump Administration threatened to impose tariffs on an additional $200 billion in Chinese goods. The first round of proposed tariffs (a 25% tariff on $34 billion worth of Chinese imports to the U.S.) went into effect on Friday, July 6.

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