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Retail’s Tariff Tension: What’s Next for Inventory, Pricing, and Supply Chain?

Retail’s Tariff Tension: What’s Next for Inventory, Pricing, and Supply Chain?

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 As retailers gear up for the critical back-to-school and holiday seasons, new tariffs on Chinese imports—some as high as 145%—are causing significant disruptions in global supply chains. In this episode of Talk Retail to Me, Parker Avery’s CEO, Clay Parnell, is joined by the firm’s Chief Consulting Officer, Amanda Astrologo, and industry thought leader Walt Holbrook to discuss the current chaos driven by tariffs and how retailers can respond effectively. While recent reports indicate a sharp decline in shipments from China and soaring freight costs, the true challenge runs deeper: retail organizations must move from reactive tactics to integrated, end-to-end strategic thinking. Key Takeaways 1. There’s no single fix—retailers need a coordinated, cross-functional response Amanda emphasizes the importance of aligning demand forecasting, pricing, allocation, and inventory strategies. “It’s not just about pulling inventory forward,” she notes. “Retailers need to be thinking holistically—how product flows, where it lands, and how pricing strategies evolve with consumer sentiment.” 2. Agility isn't just a buzzword—it’s a necessity. Walt shares how flexible retailers are renegotiating with vendors and adapting plans in real-time. “We can’t rely on playbooks anymore,” he warns. “This is mission impossible without strong leadership and fast decision-making.” 3. Foundational capabilities matter now more than ever. The trio discusses how inadequate tools and reliance on manual planning are slowing down responses. Amanda highlights a renewed focus on core capabilities like merchandise financial planning and data visibility. “You can’t execute pricing strategies or pivot on inventory if your teams are stuck in Excel spreadsheets,” she says. 4. This isn't just another short-term disruption. Comparisons to COVID are valid, but this time, consumer demand hasn’t evaporated. “People want to shop,” Amanda notes. “But they don’t want to pay 145% more.” That distinction changes the game and requires nuanced planning, inventory, and pricing strategies to protect both margin and customer loyalty. 5. Culture and creativity are competitive advantages. Both guests emphasize the need for a cultural shift inside retail organizations. Store teams must be empowered, and merchants encouraged to explore new sourcing strategies, domestic partnerships, and flexible assortments. “This is also a moment of opportunity,” Walt reminds us. Final Thoughts This episode of Talk Retail to Me presents a candid, practical discussion on how retailers can move beyond reactive tactics and build long-term resilience. Whether it’s scenario planning, realigning supply chain operations, or investing in foundational tools, the message is clear: speed, creativity, and flexibility are no longer optional—they’re crucial for survival and future growth. Host and Guests Clay Parnell, CEO, The Parker Avery Group https://parkeravery.com/clay-parnell/ Amanda Astrologo, Chief Consulting Officer, The Parker Avery Group https://parkeravery.com/amanda-astrologo/ Walt Holbrook, YODA Retail Consulting https://www.linkedin.com/in/waltholbrook/ Related Content & Resources Video Replay on YouTube https://youtu.be/kalorQerjmk Blog Post | Supply Chain Resilience in the Face of Disruption https://parkeravery.com/supply-chain-resilience-in-the-face-of-disruption/ Blog Post | Rethinking Allocation and Replenishment to Drive Better Inventory Outcomes https://parkeravery.com/rethinking-allocation-and-replenishment-to-drive-better-inventory-outcomes/ Talk Retail to Me Podcast | Strategic Sourcing Considerations for a Disrupted Supply Chain https://parkeravery.com/strategic-sourcing-in-a-disrupted-supply-chain/ Parker Avery Retail Consulting Services https://parkeravery.com/retail-consulting/

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