“As we replenish inventory at post-tariff price levels, we’ve continued to see our costs increase each week,” Walmart CEO Doug McMillon said on the retailer’s second-quarter earnings call.

The biggest difference lately, though, is financial performance, underscored by the retailers’ earnings reports this week.

When the discounter raised prices on certain items, it has observed lower- and middle-income customers trading down to lower-priced options or foregoing purchases, he said.

Tariff costs are rising for retailers, and they’ve had to get creative to avoid widespread price hikes.