As Tala opens first UK store, tariffs bite and its US expansion is paused

Athleisure brand Tala’s growth has seemed to be unstoppable in recent periods but its US expansion is having to take a back seat for now. In response to tariffs imposed by US President Donald Trump, its £5 million investment in growing the American market is now on ice.

The Times reported that CEO Morgan Fowles and founder Grace Beverley have decided to remove most of its products from its US webstore due to “obstacles to trading”.

But should those obstacles continue, given the importance of the US market, it could be forced to shift its production from China and Vietnam, two countries at the sharp end of the tariffs imposition.

Fowles told the newspaper that the removal of products from the website was because the sudden change in tariffs meant orders could be delayed at customs and shoppers might find themselves having to pay unexpected fees.

She said: “It was really disappointing when we had to pull the products from the site. Our worst fear was that [the customer] would get hit by some crazy tariff bill, the product would get stuck in customs and she’d never want to shop with us again.”

As mentioned, the story so far for Tala seems to have been one of endless progress since it was founded in 2019. It raised £5 million in a funding round last year to scale its American operations and opened a localised US website, set up a fulfilment network and invested in marketing to US consumers.

Fowles also said she’s “remaining reasonably optimistic there’ll be a resolution” but in the meantime is having to “figure out what we can do to get back online”. 

Elsewhere, the growth story continues uninterrupted, especially in its domestic market. The company has just opened its first directly-operated retail store on London’s Carnaby Street after a launch in Dubai Mall and physical retail link-ups with Anthropologie.

Fowles said “people love the experience of being inside a store and immersed in a brand,” but added that there are concerns around consumer confidence globally at the moment, “especially in the UK and in the US. Customers are being more thoughtful around all of their purchasing decisions, especially ones that feel discretionary”.

She added: “Immersing our customers in the brand has always been a key element in the decision for us to transform from a leading e-commerce brand to a prominent player in the physical retail landscape. If we were going to open a store, it had to feel distinctly Tala, from the look and feel to the experience itself. Our flagship is more than just a shopping destination. It’s a strategic extension of our brand and a way to engage with our community in a more meaningful, in-person way. Consumer shopping habits are constantly evolving, but our customers have made it clear that physical retail remains a powerful channel for connection.”