As the trade landscape shifts with the introduction of new tariffs, retail and consumer goods businesses may face uncertainty related to cost, profit margins, and growing complexity across global supply chains. 

To stay competitive, some companies are prioritizing two key strategies: investing in technology to modernize and increase the agility of their supply chains, and adopting consumer-focused approaches in pricing, promotion, and assortment planning. By combining supply chain innovation with data-driven marketing and value-driven pricing, businesses can better navigate uncertainty and strengthen customer loyalty.

Download our full report to learn more about these strategies and explore examples in the industry.

Trend 1: Supply chain modernization in an evolving marketplace  

Retailers are assessing various alternatives to offset the potentially higher costs associated with tariffs. Some are requesting suppliers to absorb a portion of  any increased costs, while others are exploring alternative production locations to mitigate risk. These actions reflect a shift from traditional vendor negotiations to more frequent, and sometimes contentious, efforts to preserve margins and supply chain stability in an uncertain trade environment.

Companies are also placing an emphasis on accurately anticipating shifts in consumer demand using AI-powered predictive analytics to enable smarter decisions on inventory, sourcing, and pricing. By prioritizing digital investment, organizations can build more responsive supply chains, manage risks better, and maintain competitiveness.

Trend 2: Delivering value while preserving trust 


In response to rising consumer concern over price uncertainty, many retailers have pledged to bear part of any potential price increases associated with tariffs while pursuing value-driven strategies elsewhere, reflecting a broader industry effort to shield consumers from tightening margins.

Resilient assortment planning has emerged as a strategy for some retailers as they try to manage impacts from tariffs. While other retailers are prioritizing private labels as a strategy to build more price-stable product mixes.

According to a recent study, surveyed respondents suggest that among other actions, retailers can maintain trust amidst potential price changes with two key actions: 1) clearly communicate any price changes, and 2) offer increased value through loyalty programs and promotions. Some brands have already employed a combination of these strategies, rebranding promotions as pre-tariff sales to encourage immediate purchases.

Conclusion

There’s no universal approach to navigating the potential challenges resulting from tariffs and market volatility. The most effective strategies are highly dependent on a company’s industry, size, supply chain structure, and risk tolerance. While investments in AI, predictive analytics, and digital tools can provide significant advantages in agility and decision-making, these must be complemented by sourcing agility, collaborative vendor negotiations, supply chain diversification, inventory management, and domestic manufacturing where feasible.

It's important for every company to weigh its own unique circumstances and capabilities to determine the right mix of strategies across assortment, pricing, and promotion. The landscape of tariffs is rapidly changing, so success within this environment will come from a flexible, multi-faceted approach, balancing innovation with operational pragmatism in response to the evolving realities of global trade.