A recent report from the warehouse robotics vendor GreyOrange highlights significant disruptions in U.S. retail stores due to ongoing tariff issues and economic instability. The report, titled “Eye on Inventory,” released on September 25, 2023, indicates that these factors have led to empty shelves, frustrated customers, and overworked staff as retailers prepare for what could be “the most unpredictable holiday shopping season since COVID-19.”
The findings are based on a survey conducted by GreyOrange in July, which included responses from 500 middle and senior managers across various retail sectors, such as grocery, apparel, and general merchandise. The data reveals a direct correlation between tariff fluctuations and inventory management challenges, which have intensified since April 2025.
Tariff Impacts on Retail Operations
Retail managers report a noticeable increase in empty shelves and stock shortages, a trend that aligns with the shifting tariff landscape. According to The Economist, the average tariff rate in the U.S. was estimated at 30% in April 2023 but has since adjusted to around 18%. This volatility has created uncertainty for businesses, leading to stalled capital expenditures and a slowdown in hiring.
The report underscores that the impact of tariffs extends beyond mere numbers; it affects daily store operations and customer experiences. Store managers have received directives from headquarters to reduce labor, cut inventory, and increase prices in response to these pressures. This has resulted in diminished store productivity, as many tasks are left uncompleted due to staffing cuts.
Consumer Experience in Transition
As retailers navigate these challenges, customers are increasingly aware of the changes. The report notes that the restructuring of supply chains is becoming evident on the sales floor. Kristalina Georgieva, managing director of the International Monetary Fund, recently remarked, “Buckle up: uncertainty is the new normal,” emphasizing the ongoing challenges faced by businesses.
The GreyOrange survey reveals that as brands adapt to a rapidly changing economic environment, the consequences of inventory issues are felt throughout retail operations, ultimately shaping the customer experience. The authors of the report state, “At its core, the data underscores how inventory issues, exacerbated by tariffs and economic uncertainty, ripple outward to shape customer experience, daily store operations, and sales.”
As the retail sector braces for the upcoming holiday season, the effects of tariff turmoil are already being felt, indicating a need for strategic adjustments to meet consumer expectations and maintain operational efficiency. With the landscape continuing to shift, retailers must remain agile in their responses to these ongoing challenges.