The recent report from Alvarez & Marsal’s Consumer and Retail Group, titled ‘Tariffs & Turmoil – Never Let a Good Crisis Go To Waste,’ serves as a critical wake-up call for retailers worldwide. It underscores the pressing need for companies to proactively address the challenges posed by evolving global trade policies and economic pressures. The report warns that the current period of apparent calm is deceptive, with the real impact of tariffs expected to manifest in future quarterly reports, making immediate action essential.
Joanna Rangarajan and Michael Prendergast, Managing Directors at Alvarez & Marsal and co-authors of the study, highlight the dangers of inaction. They argue that companies must seize this moment of crisis as an opportunity to radically improve their operations, much like the successful strategies employed during the Covid pandemic. The report specifically calls for a reduction in SG&A expenses by 15 to 20 percent, beyond traditional measures like pricing adjustments and vendor negotiations.
The study outlines nine strategic areas for retailers to focus on, including cost reduction, innovation, product optimization, and supply chain efficiency. These recommendations aim to not only mitigate the impact of tariffs but also to strengthen companies’ overall operational resilience. The report’s message is clear: the time for ‘wait-and-see’ is over. Retailers must act swiftly and decisively to navigate the complexities of today’s global trade environment and secure their future success.
This report is significant for the retail industry and beyond, as it addresses the broader implications of tariff policies on global trade and economic stability. It provides a roadmap for companies to not only survive but thrive in the face of uncertainty, making it an essential read for business leaders and policymakers alike.
This news story relied on content distributed by None. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Alvarez & Marsal Report Urges Retailers to Act Now on Tariff Impacts.
