SOTI: Why Retailers are Shifting Inventory Strategies

Retailers have long contended with seasonal demand, but 2025 has introduced a tougher challenge: persistent uncertainty.

With tariffs shifting, elections looming and supplier networks in flux, the usual playbook is no longer enough. Retailers are being forced to rethink how they plan, source and stock.

Here, Joel Mathew, Manager of Product Innovation at SOTI, outlines how retailers are rethinking inventory and assortment planning to stay flexible, and assesses what smaller retailers can do to compete.

How are retailers adapting inventory planning in today’s volatile market?

Retailers are freezing and restarting orders at an unprecedented pace, creating whiplash for suppliers and operations teams. To stay agile, many are turning to mobile-first technologies to drive distributed inventory systems, real-time decision-making and adaptive planning.

Rather than relying on bulk, long-term commitments, retailers are diversifying suppliers and placing smaller, faster-turnaround orders. This shift demands high visibility across the supply chain — from mobile scanners in the warehouse to cloud-based dashboards at HQ — to avoid overstocking, understocking or last-minute delivery failures. It’s no longer about planning once; it’s about planning continuously, with mobile tech as the backbone.

What risks come with restarting paused orders all at once?

When retailers restart large volumes of paused orders simultaneously, it can overwhelm suppliers and logistics networks responsible for order processing and inventory management. It can lead to sluggish performance like processing delays and outages, or even system crashes, resulting in lost revenue and consumer dissatisfaction.

Moreover, bulk processing of paused orders increases the likelihood of errors. Important updates in order details, such as pricing or shipping information, could be overlooked during a mass restart.

Additionally, many retailers are sourcing from alternative regions, but those suppliers often lack the scale or infrastructure to absorb sudden spikes in demand. This creates bottlenecks, longer lead times and unexpected cost increases. Without real-time visibility into supplier performance and shipment status, retailers may miss key selling windows or find themselves short on seasonal inventory. Mobile solutions are critical in helping retailers spot issues early, course-correct quickly and maintain continuity across supply and fulfilment operations.

How are retailers coping with the shift away from Chinese suppliers?

Retailers are rethinking long-standing sourcing strategies to reduce overreliance, but the transition is complex. New suppliers in regions like Southeast Asia or Latin America may have limited infrastructure, making them less equipped to handle large orders at scale. This forces trade-offs between cost, quality and speed.

To manage it, retailers are building more resilient supply chains with built-in redundancies and smarter forecasting tools. Mobile technology plays a critical role in automating compliance tracking and delivering real-time visibility — ensuring retailers can monitor and adapt to the performance of newer partners without disrupting operations.

Additionally, retailers are investing in technology to improve supply chain transparency and efficiency. This technological integration enables faster, data-driven decisions, allowing retailers to adapt quickly to shifts in demand while ensuring that they maintain adequate inventory levels without over-reliance on any single supplier.

What impact is mobile tech having on store operations and loyalty?

Retailers today are using mobile technology to transform physical stores into experience hubs (i.e., guided selling, self-checkout, personalised service) – places where digital meets human. It’s no longer just about streamlining operations; mobile tools are powering real-time consumer engagement on the floor, and that matters more than ever. According to our recent study, 81% of global consumers say speed and 73% cite convenience as key factors in deciding when and how to shop in-store.

Mobile-enabled associates can meet modern shopper expectations by accessing personalised insights, checking inventory without leaving the consumer’s side and completing sales from anywhere in the store. For example, if a consumer is looking for a specific item in store that isn’t on display, the associate can scan the product’s SKU/barcode to check real-time inventory. This creates a seamless shopping experience that builds trust, reduces frustration and increases conversions.

For consumers, it's not just a smoother transaction — it's a reason to return. Loyalty is earned through experience and mobile tech makes those experiences consistently frictionless and memorable.

How can smaller retailers stay competitive without scale?

Smaller retailers can’t always compete on scale or pricing power, but they can win on agility. By narrowing their focus and using technology to punch above their weight, SMBs can offer highly-curated, consistently excellent experiences.

Key to this is building a tech foundation that streamlines operations and maximises productivity — and mobile solutions like Enterprise Mobility Management (EMM) play a big role. Shared devices used by employees across shifts, mobile POS systems and real-time analytics allow small teams to do more with less, while maintaining the speed and service consumers expect. The right tools let them adapt fast, serve better and grow on their own terms.

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