Key Takeaways
- Retail supply chains are undergoing a significant strategic shift due to rising tariffs, geopolitical pressures, and surging consumer expectations.
- Many retailers are accelerating their nearshoring and regionalization efforts to mitigate risk and improve control, stability, and agility.
- Technology misalignment is becoming a critical vulnerability, with 84% of retail supply chain leaders struggling to align IT infrastructure for multinode fulfillment.
- Retailers are seeking more from their 3PLs, with 84% expecting to restructure their partnerships by 2026.
- Operational reliability is emerging as the new benchmark for success, with a focus on on-time delivery, perfect order fulfillment, inventory accuracy, and real-time visibility.
Introduction to the Shift in Retail Supply Chains
The retail supply chain sector is undergoing 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 reveals that organizations are being forced to rebuild their logistics networks for resilience rather than speed. The study, commissioned by WSI | Kase and conducted by TrendCandy, highlights an industry rethinking everything from supplier geography to warehouse placement heading into 2026. Many retailers are accelerating their nearshoring and regionalization efforts, motivated by a heightened need for control, stability, and agility, rather than just cost pressure.
The Impact of Tariffs on Retail Supply Chains
Three-quarters of retail supply chain leaders say tariff turbulence is redefining their 2026 strategies, prompting a widespread pivot toward regionalization and supplier diversification. Ninety-three percent are now prioritizing diversification within Asia to reduce tariff exposure, and many are replacing single-country dependency with layered sourcing networks that blend domestic, nearshore, and diversified sourcing models. 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. As a result, retailers are shifting their sourcing away from China towards tariff-neutral countries, with 77% of supply chain leaders already making this move.
The Growth of Nearshoring
Nearshoring momentum is building, with 87% of leaders planning nearshoring pilots in Mexico or Central America within the next 24 months. However, few describe themselves as fully ready for a regional model due to infrastructure constraints, internal resistance, and limited capital. Top motivations for nearshoring and reshoring include faster delivery, greater quality control, and improved customer trust, all signals that retailers see proximity as key to long-term resilience. Despite this, execution maturity has not yet caught up with strategic intent, and retailers are struggling to align their IT infrastructure for multinode fulfillment.
The Challenge of Technology Misalignment
Technology misalignment is becoming a critical vulnerability, with 84% of retail supply chain leaders struggling to align IT infrastructure for multinode fulfillment. Visibility is now emerging as a top concern, with 88% saying 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. As retailers accelerate nearshoring and regional fulfillment efforts, they are seeking more from their 3PLs, with 84% expecting to restructure their partnerships by 2026.
The Importance of Operational Reliability
Operational reliability is emerging as the new benchmark for success, with a focus on on-time delivery, perfect order fulfillment, inventory accuracy, and real-time visibility. Retailers are prioritizing North American warehousing, regional distribution, and flexible multinode networks, but capital constraints and procurement delays are stalling urgently needed expansions. Many also admit they lack detailed contingency plans for tariff shocks, supplier failures, or transportation disruptions, introducing operational fragility during a high-risk planning cycle.
Conclusion and Future Outlook
The key takeaway from the 2026 outlook is that the businesses best positioned for next year will be those that invest early, modernize infrastructure, prioritize transparency, and partner with logistics providers capable of scaling across regions. 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. Retailers must be prepared to adapt to these changes and invest in the necessary infrastructure and technology to remain competitive in the years to come.
