New Report Urges Retailers to Act Now Amid Tariff Turmoil

The current period of apparent calm in the retail sector belies the underlying volatility and risks posed by shifting global trade policies, according to a new report by Alvarez & Marsal's Consumer and Retail Group. The report, titled Tariffs & Turmoil – Never Let a Good Crisis Go To Waste, emphasizes the critical need for immediate action by retailers to navigate the challenges ahead.

Joanna Rangarajan, a Managing Director at Alvarez & Marsal and co-author of the study, warns that the impact of tariffs may not be immediately visible in quarterly reports but will inevitably affect companies that fail to act proactively. The report advocates for a strategic reset, urging companies to seize the current disruption as an opportunity to fortify operations and identify cost-cutting measures.

Michael Prendergast, another co-author and Managing Director, points out the prevalent inactivity among companies, suggesting that the tariff crisis should be used as a catalyst for significant operational improvements. The report outlines nine key areas for focus, including cost reduction, innovation, pricing strategies, and supply chain optimization, to help retailers adapt to the changing landscape.

The Alvarez and Marsal Consumer and Retail Group's report serves as a wake-up call for the retail industry, highlighting the importance of taking bold steps now to mitigate the effects of tariffs and economic pressures. By adopting a proactive approach, retailers can turn the current crisis into an opportunity for growth and resilience.