CHICAGO – As geopolitical uncertainty and evolving trade policies continue to reshape the global supply landscape, U.S. retailers are confronting renewed challenges around tariff volatility, particularly concerning imports from China. According to global consulting firm Kearney, many companies remain underprepared to respond swiftly and effectively to the rising complexity.
In an article on Kearney's website, authors Katherine Black, Natalie Shield and Amy McCaughey highlight widespread concern across the industry and reveal significant disparities in readiness. Based on a survey of 200 U.S. retail decision-makers conducted this month, Kearney found that:
- Only 33% of retailers mapped their tariff exposure at the SKU level.
- Only 24% have modeled the financial and demand impact of tariffs.
- Fewer than 15% have established a centralized, cross-functional “control tower” to guide coordinated decision-making.
While short-term disruptions have drawn attention, Kearney emphasizes that tariffs have more profound, long-term implications across multiple areas of retail operations. These include financial planning, pricing governance, communications strategy, performance management, and vendor negotiations.
The report outlines five key dimensions where forward-thinking retailers are beginning to build resilience:
- Financial forecasting adapted for tariff-driven cost variability.
- Pricing governance with defined decision rights.
- Transparent communications with stakeholders.
- Revised performance incentives aligned with tariff exposure.
- Strategic vendor engagement and cost mitigation planning.
To navigate this environment, Kearney recommends a capability-building approach, focused on exposure mapping, scenario modeling, and mitigation strategies such as shifting sourcing, nearshoring, reassessing product formats, and applying design-to-value techniques.
While some retailers have started implementing these changes, integration into enterprise-wide operations remains limited. Kearney concludes that structured, cross-functional agility, not reactive measures, will ultimately determine which retailers emerge stronger amid ongoing tariff uncertainty.
