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Reducing the impact of import tariffs on retailers with growth plans

tariffs

Many retailers have been preparing for months for the unknown scenarios associated with import tariffs.

For those executing plans for growth, expansion, or redesigns, this uncertainty adds another layer of concern — even before feeling the impact of potential tariffs on products for sale in their stores. To navigate these complexities, retail inventory consolidation is a strategic solution to help retailers mitigate the impact of tariffs and supply chain disruptions, offering both cost savings and long-term stability.
 
The most significant benefit of retail furniture, fixtures and equipment (FF&E) inventory consolidation is its potential to drive substantial cost savings. On average, retailers who switch to retail inventory consolidation can save anywhere from 12-16% in costs by reducing errors and inefficiencies.

By streamlining and optimizing supply chain processes, inventory consolidation offers retailers a range of advantages, including reduced procurement costs, minimized supply chain risks, enhanced project efficiency, and greater flexibility in inventory handling.
 
Reduced Costs and Increased Efficiency

Partnering with a trusted retail inventory consolidation expert helps retailers navigate complex store development supply chains and avoid costly delays and disruptions. By streamlining logistics and providing real-time inventory insights, their support enables projects to stay on track, bringing sales sooner for the retailer while minimizing financial impacts.
 
Minimized Risks and Supply Chain Disruptions

Ensuring project schedules stay on track is crucial for store revenue. By consolidating FF&E inventory and logistics, retailers can mitigate the risk of supply chain disruptions or tariff-related cost increases. This proactive approach provides a steady flow of store equipment and materials, preventing last-minute sourcing challenges and costly delays.

Lower Procurement Costs and Price Stability

Consolidation helps retailers protect their supply chain and maintain a stable inventory flow that reduces vulnerabilities to unexpected disruptions. In addition, by leveraging volume and ordering in bulk, retailers reduce per-unit costs and secure better pricing while minimizing sudden cost increases due to tariffs or fluctuating shipping rates.
 
Greater Flexibility and Just-in-Time Delivery

Retail inventory consolidation provides secure warehouse storage with flexible coordination, ensuring FF&E are available exactly when and where they’re needed to meet ever-evolving store project schedules. This minimizes supply shortages, reduces rush shipping fees, and improves overall inventory management.
 
Investing in Future Stability

Retailers who take proactive steps now — securing inventory ahead of potential supply chain challenges — can maintain project timelines and mitigate financial risks. Partnering with an experienced inventory consolidator not only reduces uncertainty but also optimizes operations for long-term growth.

By ensuring inventory availability, improving logistics efficiency, and reducing overall costs, retailers can focus on expansion and store improvements with confidence, regardless of future tariff fluctuations or supply chain disruptions.

 

Philip Vines

Phillip Vines is director of business development at Store Opening Solutions, which provides retail inventory consolidation for store openings and remodels. Store Opening Solutions is part of Marmon Retail Solutions, a Berkshire Hathaway company.

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