With inflation, tariffs, and economic uncertainty putting pressure on both consumers and businesses, retailers are facing a perfect storm. Costs are rising, supply chains are strained, and shoppers are cutting back. But despite the gloom, opportunities still exist—if you know where to look.Based on insights from How retailers can grow sales during a recession, this episode breaks down five smart, actionable strategies retailers are using to navigate the downturn. From smarter supply chains and strategic discounting to loyalty-driving experiences and hyper-targeted advertising, we explore what it really takes to win over customers in an era of tightened wallets.What You’ll Learn in This Episode:A)  The Economic Reality Facing Retailers72% of U.S. companies report rising costs from tariffs8 in 10 shoppers are actively changing spending habitsConsumer sentiment is declining, with growing fears of recessionB)  How Consumer Behavior Is ChangingIncreased focus on affordability and essential purchasesShift toward cheaper brands, fewer purchases, and delayed spendingHigher credit and buy-now-pay-later usage, especially among those living paycheck to paycheckSurprising loyalty to American-made goods—even among budget-conscious consumersC)  The 5 Strategic Responses from Retailers1.  Boost Supply Chain ResilienceImprove inventory visibility and reduce dependence on fragile overseas networksExplore re-shoring, near-shoring, and friend-shoring strategies2.  Double Down on Customer Experience (CX)Use frictionless experiences to build loyalty when product differentiation and pricing are squeezed59% of consumers say CX is a key driver of brand loyalty3.  Use Strategic DiscountsDon’t discount everything—be targetedUse bundles, shipping thresholds, and margin-smart markdowns to increase order value4.  Invest in Targeted AdvertisingFocus efforts on high-value customers who are still spendingSegment messaging to appeal to differing financial realities5.  Shift From “Want” to “Need”Make products feel essential or emotionally irreplaceableOffer quality and uniqueness to justify purchases during leaner timesKey Takeaways:Retailers face a dual challenge: higher operational costs and more cautious customersConsumers are making an average of five adjustments to their spending behaviorStrategic adaptation is key: optimized supply chains, smart discounting, and personalized CX are critical leversTargeting the right customer segments and delivering perceived “value” is more important than everBrands that feel essential—either emotionally or functionally—are better positioned to thriveSubscribe to our podcast for expert insights on retail strategy, economic resilience, and shopper trends. Visit The Future of Commerce for in-depth research and guidance. Share this episode with retail leaders, marketing teams, and anyone preparing for what’s next in the economy.

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