How Can Retailers Cushion Inventory Issues in Advance of the Holiday Sales Season?

As September draws to a close, retailers and industry analysts are keeping their eyes on the ever-important holiday sales season. There's just one problem, as Chain Store Age editor Zachary Russell underscored: U.S. retailers are staring down tariff-related stockouts, and the unhappy customers that come with them.

Citing recent survey data from GreyOrange, Russell indicated that there was a concerning trend of inventory problems facing American retailers, according to management figures.

Among the survey's key findings:

• More than three-quarters (78%) of retailers polled indicated that they'd noticed customers are shopping earlier, or buying in larger quantities, to combat the likelihood of future price increases or stock shortages.
• Almost one-in-four (24%) retail managers stated that they were unable to locate stock which their inventory systems claim is readily available on a daily basis, and a majority (63%) said that they encounter this situation at least on a weekly basis.
• That's a problem for shoppers: Management staff reported a mean of 14 upset customers a month in relation to the stockouts, and 77% said they had lost sales due to an inability to find stock quickly enough.
• There's trouble brewing, too. Approximately half of the managers polled said that they'd be warned by higher-ups that price increases were coming (50%), or that inventory levels were expected to shrink (47%) as a result of the ongoing tariff situation.
• Speaking of tariffs, more than half (51%) of respondents indicated that they'd trimmed staffing levels over the course of the last six months. Of these, 59% have cut staff due to budgetary constraints, and 42% did so in response to sluggish sales. In related findings, 36% of retail managers said they'd skipped or delayed daily store tasking due to a shortage of workers needed to execute.

All of this adds up to a concerning portrait of the current U.S. physical retail landscape, according to Troy Siwek, general manager of gStore by GreyOrange.

“We see lots of managers operating with false confidence in their inventory visibility,” Siwek said.

“They underestimate how often products go missing on the sales floor because they don’t always hear about it. A customer might not ask for help if an item isn’t where it should be. Most of the time, they’ll just walk out," he added.

Despite Staffing and Inventory Issues, Retailers Appear Optimistic About Holiday Sales in 2025

Russell pointed out that despite the apparent dual headwinds of inventory and staffing issues pertaining to U.S. retailers, they appeared relatively optimistic about their prospects this holiday season in terms of sales. Almost half (47%) said that they were more confident on the subject of holiday stock availability versus the year prior — although a sizable minority (20%) did state that they were less confident on the same score. Russell highlighted that senior managers (55%) were more likely to feel optimistic over this question than middle managers (42%), suggesting that the closer one is to front-line operations, the less confidence is felt.

“The fact that retailers are already pushing holiday merch could be a sign of this optimism,” Siwek said.

“When they’re bullish, they flood shelves and build out big displays. When they’re bearish, they keep stock low and hold inventory in distribution centers. Retailers have spent the past few months shoring up their supply chains. They’re hoping those efforts will resolve their inventory issues in time for the holidays," he concluded.