Retail Supply Chains in 2025: From Tactical Adjustments to Strategic Transformation

If the last few years have taught us anything, it’s that the retail supply chain is no longer just a back-office function—it’s a core differentiator. From COVID-19 to consumer expectations, and now tariff-driven uncertainty, the pressure on retailers to evolve their supply chains has never been greater.

I've been poring over the latest benchmark report from RSR Research (Retail Systems Research) , which makes this reality crystal clear. While many retailers made important progress post-pandemic—especially in demand forecasting, supplier visibility, and digital agility—2025 has brought new and immediate tests. The question now isn’t whether your supply chain is improving, but whether it’s resilient enough to thrive in this new era of instability.

Here’s my breakdown of what retailers need to do now, based on key findings from RSR's report:

1. Acknowledge the Chaos, But Don’t Wait for Clarity

The new wave of U.S. tariffs introduced in April 2025 has reintroduced chaos into what was a stabilizing retail environment. RSR describes it as “planning in an environment when planning is nearly impossible.” Sound familiar?

My Take: Stop waiting for stability. Build for flexibility instead. Retailers who continue investing in forecasting, scenario modeling, and real-time monitoring—even in the face of trade volatility—will be far better positioned to pivot as new disruptions emerge.

2. Shift from Tactical to Transformational

Retailers have largely focused on tactical improvements—better forecasting, faster allocations, stronger supplier communications. But that’s not enough anymore.

Recommendation: It’s time to embrace a more fundamental redesign of supply networks.

That means:

• Integrating AI/ML for predictive and prescriptive analytics
• Reducing reliance on fractured legacy systems
• Investing in new, AI-based planning and inventory management toolsets
• Building more local/regional sourcing capabilities

Over-performers—what RSR calls “Retail Winners”—are already on this path. They’ve moved beyond reacting to disruptions and are planning before they hit.

3. Trust the Tools You’ve Already Bought

RSR’s report reveals a frustrating disconnect: retailers know the value of AI-driven forecasting, yet many still hesitate to trust the outputs.

My Advice: It’s time to go all-in. If you’ve invested in AI-enabled supply chain tools, it’s time to operationalize them—trust but verify. Finance, healthcare, and logistics firms are already doing this at scale. Retailers must follow.

4. Fix the Visibility Gaps

Nearly half of retailers still lack visibility at key points in the supply chain. That’s a non-starter in a world where agility is essential.

Action Plan:

• Bridge data silos between merchandising, supply chain, and store ops
• Implement real-time monitoring across the supply network
• Leverage digital twins to simulate disruption scenarios and model responses

You can’t respond to what you can’t see.

5. Collaboration Is the New Competitive Advantage

RSR highlighted an important but often overlooked insight: retailers adapted fastest during COVID because they collaborated internally and externally. In today’s tariff-driven landscape, the same must apply.

Call to Action: Share the burden with partners. Whether it’s navigating new sourcing challenges or cost-sharing on tariff impacts, joint problem-solving is how retail networks—not just individual companies—will stay resilient.

Final Word: Retail Winners Lead with Agility

The report’s core finding is this: Retail Winners are planning differently. They’re focused on localized forecasts, scenario simulations, and proactive mitigation strategies. They aren’t just trying to survive—they’re building a supply chain that can thrive no matter what the world throws at them.

As we move deeper into 2025, the retailers that embrace supply chain transformation—not just efficiency—will emerge as the real winners. Let’s make sure you’re one of them.

To read RSR's Full Report on this topic, Visit RSR's Website.