Let’s talk about the elephant in the boardroom – tariffs and geopolitical headwinds that have made many retailers hesitant to invest in critical technology infrastructure. In the last year, this has slowed initiatives, tightened budgets and encouraged a “wait and see how the economy fares” mindset.

But is this approach the most effective one, or are retailers inadvertently setting themselves for a greater risk of failure?

Abdelkader Keddari, VP Strategic Solutions at Fluent Commerce, explores the high cost of doing nothing, and outlines why now is not the time for retailers to delay technology projects.

The cost of inaction in times of turmoil

It’s tempting for retailers to hold back spending when tariffs threaten to inflate costs and introduce new complexities. The logic? Freeze investments, tighten belts and wait until clearer waters emerge. Yet, this pause isn’t a neutral act – it’s a costly one. When programmes are delayed or shelved, companies aren’t just stalling their plans; they’re falling behind.

Customer expectations are evolving rapidly, especially in the era of omnichannel retail. Consumers demand seamless experiences, which require real-time inventory visibility and rapid fulfilment – these are table stakes. If retailers delay investing in technology solutions like supply chain visibility, automation or scalable ecommerce systems, they risk losing ground to competitors who are advancing their technologies.

Investing specifically in supply-chain and order management capabilities is critical because it determines whether retailers can capture the full value of every sale. Without robust systems, businesses risk overselling – frustrating customers and eroding loyalty, or underselling – losing potential sales to competitors. Smarter order orchestration ensures inventory is working harder, maximising peaks, reducing stock sitting idle and optimising fulfilment paths. The result is not just healthier profit margins, but fewer of the hidden costs that creep in when operations aren’t running smoothly.

The hidden cost of delay

The real cost of hesitation isn’t obvious at first. It manifests later in lost market share, declining margins and missed opportunities.

Digital transformation is no longer seen as optional – it’s vital for resilience and growth. Holding back on tech investments may feel safe in uncertain times, but it often creates bigger costs down the road.  Research by McKinsey underpins this, it said: “Historical evidence suggests that companies investing in technology or digital transformation during economic downturns achieve lasting advantages – outperforming peers during recoveries by 10–30% and maintaining leadership for years.”

The danger comes in the ‘rebound’ phase. When geopolitical tensions ease and demand spikes, retailers will scramble to upgrade systems and expand capacity. By then, vendors are booked, prices are higher and resources are more scarce. Those who delayed will face higher costs, lower quality and an inability to scale swiftly.

That’s why the systems retailers choose today are so essential. Modern order management platforms offer flexibility and can work with advanced AI technologies to adapt in real time. Intelligent agents can reroute orders, rebalance stock, and test scenarios automatically. These platforms then shift from passive monitors to active performance drivers – helping retailers handle demand surges without bottlenecks or inflated costs, while protecting service levels and margins against future disruptions.

What retailers should do now

In times like these, strategic agility is critical. Here are some steps retailers should consider:

• Audit and reassess: Revisit existing technology programs. Are they aligned with long-term strategy? If so, why pause? If not, reconsider.
• Drive efficiency: In uncertain times, making every available sale, increasing inventory turns and stripping cost out of fulfilment and customer service is of key importance to maximising margins
• Secure critical partnerships: Engage with key vendors early to lock in capacity and pricing before supply-demand dynamics shift.
• Start small, think big: Pilot new technologies or improve existing ones incrementally. A phased approach reduces risk and allows for course correction.
• Communicate clearly: Educate leadership on the long-term costs of delays – lost market opportunities, increased costs at scale, and rising customer dissatisfaction.

The bottom line: investing in competitive edge

While tariffs and geopolitical tensions are real and impactful, adopting a risk-averse stance that halts technology investments can be a greater threat to a retailer’s future than the tariffs themselves. Inaction today risks making your business obsolete tomorrow.

History shows that those who resist the temptation to pull back, who instead re-prioritise and adapt while others hesitate, will emerge stronger from market upheavals.

Technology isn’t just a cost centre; it’s a strategic asset. Retailers who act now won’t just navigate uncertainty, they’ll define a new standard in resilience and future retail growth.