Shoppers Want Honest Answers on Rising Prices

Nearly half of U.S. consumers report being unable to purchase essential goods such as food, household supplies, and apparel due to stockouts, according to a new report by PYMNTS Intelligence.

The research in the June 2025 Consumer Tariff Sentiment report, “Stock Out. The Impact of Tariffs on Consumer Product Prices and Availability,” found that 47% of shoppers were unable to find key items in recent weeks. While these shortages stem in part from lingering global disruptions, tariffs are emerging as a clear price driver, and one that is disproportionately affecting younger and financially vulnerable consumers.

After all, among the categories most affected include groceries, personal care products, and clothing; all segments where many U.S. households depend on low-cost imported goods. The downstream impact of the tariff-induced price hikes and supply constraints is that they are tending to hit the hardest where wallets are thinnest: younger and financially vulnerable consumers.

The report found Gen Z, millennials, and households living paycheck to paycheck are not only more exposed to product stockouts, but they are also paying more for less variety.

This isn’t just a consumer story. It’s a retail reckoning, and potentially a strategic inflection point.

The PYMNTS Intelligence data shows that consumers, particularly those under financial pressure, are more exposed to tariff-related effects. Paycheck-to-paycheck households without savings were significantly more likely to report stockouts in essential goods. They also showed higher reliance on low-cost imports, with 22% using them for food and 28% for clothing, compared to 12% and 22% respectively among financially secure shoppers.

Meanwhile, Gen Z and millennials, who dominate emerging purchasing power, are also more affected due to their price sensitivity and preferences for affordable, global brands.

Retailers that proactively address these issues through transparent pricing, adaptive sourcing and stronger supply visibility may have a chance to redefine consumer trust and loyalty. Underscoring this is the fact that while 1 in 3 consumers said retailers were direct in attributing price increases to tariffs, another quarter received only vague references to “higher costs.” In an inflationary environment, that lack of clarity can potentially drive uncertainty and defection.

Read the report: Stock Out. The Impact of Tariffs on Consumer Product Prices and Availability

On the upshot, retailers may have a role to play in bridging the communication gap. Price changes and product shortages — when explained clearly — don’t necessarily erode trust. On the contrary, transparency can help to serve as a competitive advantage, especially among younger demographics who increasingly value authenticity in brand relationships.

The PYMNTS Intelligence report also found that 48% of consumers expect tariffs to double the pace of inflation. That expectation — particularly high among Gen Z and financially stressed consumers — means retailers may have a window to lead with messaging, not just pricing.

By integrating tariff impact communications into apps, receipts, loyalty platforms and in-store signage, retailers may be able to shift from reactive to proactive. Instead of being blamed for higher prices, they may ultimately be seen as advocates for consumer interests.

The report also found that retailers haven’t stopped attempts at innovating on pricing. As cost pressures rise, multi-tier product strategies may allow stores to maintain access at multiple price points. Private-label lines — many of which carry lower import exposure — are increasingly being positioned as first-line alternatives to global brands impacted by tariffs. In previous inflationary cycles, retailers that expanded affordable options often saw stronger customer retention and brand affinity, particularly among younger and lower-income segments.

The current pressure from tariffs and global sourcing is real. But for retailers willing to rethink supply chains, double down on private-label innovation and engage transparently with their customers, the moment offers more than a challenge. It could offer a brand-building opportunity.

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