Survey: Retail execs preparing for supply chain disruptions, tariffs
A new survey of retail executives reveals that concerns over tariffs, supply chain operations and pricing are persistent.
More than one-in-five retail executives said they are not confident in their supply chain’s ability to manage disruptions, according to the poll from SaaS firm 7thonline. In response, leaders are reducing overall inventory levels (26%), diversifying suppliers (24%) and shifting to “just in-time” inventory models (12%).
Nearly a quarter (24%) of those surveyed said they have made infrastructure changes to strengthen their supply chain resilience, including implementing a more responsive pricing strategy (20%) and improving speed to market (14%).
[READ MORE: Survey: Most retailers raise prices, rebuild supply chain in response to tariffs]
The strong majority (73%) of retail executives express concern about additional increases in tariffs over the next 12 months. While half (50%) of respondents have not taken action on tariffs, 24% are planning on passing increased costs onto customers. Twenty-two percent are absorbing costs and reducing margins, while 17% are negotiating new supplier terms and 13% are reducing or eliminating affected SKUs.
When asked what their first response would be to a new tariff increase, 35% said they would adjust pricing, 14% said they would evaluate supplier locations or sourcing strategy, and 12% will cut back on product assortments or categories.
A third of retail executives are already using AI to forecast demand, and 34% expect it to play a major role in sustaining or growing profits within the next two years. While most are maintaining their current tech investments, adoption is still limited by internal expertise gaps, budget constraints and uncertainty about ROI. Only 16% are currently using AI for demand forecasting, despite growing recognition of its potential.
“Retailers are balancing immediate pressures with long-term priorities – from managing tariff impacts to cautiously adopting innovative technology such as AI,” said 7thonline. “As 2025 unfolds, building flexibility, improving forecasting and investing in strategic planning will be key to staying competitive.”
7thonline surveyed 105 retail executives about their retail strategy from June 2-11, 2025. Of the respondents that disclosed their job title, 53% were C-suite executives, 16% were owners and 8% were directors.
