Key Takeaways
- The retail supply chain industry is undergoing a significant strategic shift due to rising tariffs, geopolitical pressures, and increasing consumer expectations.
- Many retailers are accelerating their nearshoring and regionalization efforts to mitigate risk and improve control, stability, and agility.
- Supply chain leaders are prioritizing diversification within Asia to reduce tariff exposure and replacing single-country dependency with layered sourcing networks.
- Technology misalignment is becoming a critical vulnerability, with 84% of leaders struggling to align IT infrastructure for multinode fulfillment.
- Operational reliability is emerging as the new benchmark for success, with retailers focusing on on-time delivery, perfect order fulfillment, inventory accuracy, and real-time visibility.
Introduction to the Survey Findings
The retail supply chain industry is experiencing one of the fastest strategic shifts in decades, driven by rising tariffs, geopolitical pressures, and surging consumer expectations. A recent survey of 250 retail supply chain leaders, commissioned by WSI | Kase and conducted by TrendCandy, highlights the industry’s transformation. The study reveals that organizations are being forced to rebuild their logistics networks for resilience rather than speed, with many retailers accelerating their nearshoring and regionalization efforts. The motivation behind this shift is not just cost pressure, but a heightened need for control, stability, and agility.
The Impact of Tariffs on Retail Supply Chains
Tariffs are a major factor driving change in the retail supply chain industry. According to the survey, 77% of supply chain leaders have already shifted sourcing away from China toward tariff-neutral countries, and 87% are increasing buffer inventory to hedge against volatility. This shift is prompting a widespread pivot toward regionalization and supplier diversification, with 93% of leaders prioritizing diversification within Asia to reduce tariff exposure. The loss of Section 321 de minimis exemptions is also creating upheaval, raising landed costs for small parcels and pushing brands to revisit cross-border ecommerce strategies and fulfillment models.
Nearshoring Momentum Builds
While interest in nearshoring has surged, only a small share of leaders say their networks are fully equipped for regional fulfillment. The momentum is geared toward North American and hemispheric supply networks, with 87% of leaders saying they are planning nearshoring pilots in Mexico or Central America within the next 24 months. Top motivations for nearshoring and reshoring include faster delivery, greater quality control, and improved customer trust, signaling that retailers see proximity as key to long-term resilience. However, execution maturity has not yet caught up with strategic intent, with infrastructure constraints, internal resistance, and limited capital posing significant challenges.
Technology Misalignment and Vulnerability
Even as more of the supply chain invests in technology, logistics ecosystems remain fragmented. The survey shows that 84% of retail supply chain leaders struggle to align IT infrastructure for multinode fulfillment, bringing attention to the difficulty of connecting OMS, WMS, TMS, and carrier systems in a real-time, data-driven environment. Visibility is now emerging as a top concern, with 88% of leaders saying that transparency into supply chain changes is essential to strengthening customer loyalty. This highlights a widening gap between the experience consumers expect and the systems retailers rely on.
Partnerships and Infrastructure Expansion
The survey reveals a sector on the verge of major partner realignment, with 84% of leaders expecting to restructure their 3PL partnerships by 2026. Although only 58% feel confident that their current providers can support required strategy shifts, retailers are seeking more from their 3PLs as partnerships enter a redefinition phase. Infrastructure expansion is underway, but investment hurdles slow progress, with retailers prioritizing North American warehousing, regional distribution, and flexible multinode networks. However, capital constraints and procurement delays are stalling urgently needed expansions, especially for brands attempting to move from global to hybrid or nearshore-regional sourcing models.
Operational Reliability and Success
Operational reliability is emerging as the new benchmark for success, with retailers focusing on on-time delivery, perfect order fulfillment, inventory accuracy, and real-time visibility. Many leaders admit that they lack detailed contingency plans for tariff shocks, supplier failures, or transportation disruptions, introducing operational fragility during a high-risk planning cycle. As the industry navigates this period of transformation, the businesses best positioned for success will be those that invest early, modernize infrastructure, prioritize transparency, and partner with logistics providers capable of scaling across regions.
Conclusion and Outlook
The retail supply chain industry is entering a defining year, with the next 12 months shaping the future of the sector. As tariff landscapes shift, fulfillment costs rise, and consumer expectations tighten, the report concludes that retail’s next era will be defined not by speed, but by resilience, visibility, and control. Supply chain leaders must prioritize investment in technology, infrastructure, and partnerships to stay ahead of the curve and thrive in this new environment. By doing so, they can build a more agile, responsive, and customer-centric supply chain that is better equipped to handle the challenges and opportunities of the future.