Cost-of-living crisis a big problem for retailers as they call for more government support, Fluent Commerce research

Fluent Commerce, a provider of distributed order management system (OMS), Fluent Order Management, has released its second annual Retail Resilience study, which found that the cost-of-living crisis is the biggest challenge facing 56% of retailers.

Nearly a third of respondents said they were ‘concerned’ for their business this year, up from 15% in 2024. In addition, while 93% of retailers expected business growth in 2024, only 81% retailers now believe this is the case.

The survey of more than 100 retail professionals was conducted at Retail Technology Show 2025 in London this month, one week after Chancellor Rachel Reeves’ spring statement. In response, 64% of people said the government has not put enough measures in place to support retailers, with a quarter answering that government policies are harming the retail industry. 

“Buying behaviours have evolved, with consumers now prioritising essential purchases over discretionary spending. This shift is prompting retailers to adapt their strategies to remain aligned with their customers' needs,” says Rob Shaw, GM EMEA at Fluent Commerce.

“At the same time, businesses are navigating increased operational costs, including recent rises in national insurance contributions. While these changes present challenges, they also underscore the importance of innovation and agility in today’s retail environment.”

The survey underlined the fact that supply chain disruptions have continued to be a headache for retailers over the last few months. One fifth of retailers named the threat of US trade tariffs as one of their biggest current challenges. Ongoing issues like the Panama Canal disruptions have impacted four fifths of retailers, with 8% of respondents labelling these disruptions as ‘severe’. 

When asked about the biggest concerns stemming from these disruptions, 30% said having to incur higher costs due to rerouting orders, 28% noted having large amounts of stock unavailable online, and 27% were concerned about having to increase prices due to rerouting orders. 

However, these challenges have offered an opportunity to boost supply chain resilience. In response to these complications, 26% of retailers have looked to make their supply chain more resilient, with over one fifth already implementing changes. 

To do so, 43% retailers looked at diversifying their suppliers, and 43% looked into sourcing goods from local suppliers. 31% also explored re-routing goods through safer but more costly routes. 9% said they hadn’t yet looked into different sourcing or fulfilment options but might do so if disruptions continue. 

According to the survey, another key pressure facing today’s retailers is keeping up with new technologies - with 36% of respondents naming this as a key challenge. Diving into their specific technology pain points, one third of retailers are concerned about implementing new technologies like AI and 32% said delivering a seamless omnichannel experience. 

Only 28% of retailers said they had real-time inventory visibility across their supply chain - a drop from 45% in 2024. Poor visibility is causing problems for 68% of retailers, with 29% saying it caused significant problems. Over a third also noted that poor inventory visibility made it challenging to deliver on customer experience. 

“Retailers are navigating a rapidly evolving technology landscape, and one of the most pressing challenges is gaining better visibility into their inventory. Without real-time data, it becomes increasingly difficult to deliver the kind of seamless, responsive customer experience that today’s shoppers expect. The drop in inventory visibility from last year highlights just how crucial this area has become,” Shaw says.

“Now more than ever, it’s important for retailers to step back and assess how their inventory is managed and shared across systems. Having a clearer view of what stock is available - whether in-store, in transit, or in back order - not only supports better customer communication but also helps avoid common pitfalls like overpromising or missing delivery expectations. This isn’t just about technology for technology’s sake. It’s about enabling smarter decision-making, building resilience into operations, and ensuring retailers are better equipped to handle uncertainty.”

When asked about their leading strategic priorities for the next five years, investing in new technology remained the top priority for 62% respondents. Other priorities were investment in product innovation (34%), sustainability initiatives (34%) and expansion into new markets (29%). 

2025 RTIH INNOVATION AWARDS

Supply chain technology will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.