Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) is bracing for a $25 million financial impact from the Donald Trump administration’s tariffs in the coming fiscal year, forcing the company to significantly reduce the number of products in its famous gift shops and aggressively renegotiate deals with its suppliers.
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CBRL To Reduce Store Products By 10% To Fight Tariffs
The strategy was detailed by executives during the company’s fourth-quarter earnings call on Wednesday as a direct response to the escalating costs. The most significant change for customers will be a smaller selection in the brand’s Old Country Store.
According to Senior Vice President and CFO Craig Pommells, the total number of retail items, or SKUs, is expected to be cut by approximately 10% in fiscal 2026 as the company purges unprofitable merchandise from its shelves.
Pommells was blunt about the company’s rationale for trimming its retail assortment. “If we can’t make a reasonable profit on it, then we don’t need to sell it,” he told investors, explaining that the company is re-evaluating every product in light of the tariff costs.