3 ways retailers are maintaining inventory resilience amid tariff turmoil

Core Insights - Inventory planning is significantly impacted by tariffs and geopolitical trade uncertainties, leading to challenges in demand projections [1] - Retailers are increasingly utilizing real-time data and artificial intelligence to enhance coordination with suppliers [2] - The industry has advanced in agility and response times, with improvements noted over the past two years [3] Inventory Strategies - Digital Twins: Retailers are employing digital twin technology for contingency planning, which aids in maintaining agility in operations [4][5] - SKU Mix Optimization: Retailers are focusing on assortment standardization to enhance productivity and reduce reliance on discounts for inventory clearance. Companies like Levi Strauss are analyzing their SKU mix to maximize sales from the top 20% of products [5][6] - Focus on High-Performing Products: Companies such as Hasbro, Nike, Coach, and Uniqlo are optimizing their inventory by prioritizing high-demand products, including those sourced from India over more expensive alternatives from China [6]