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How Resilient Retailers Can Navigate Economic Turbulence—and Win

Written by

Steph Byce

Director of Demand Gen

Table of contents

Category

Learning Series

Last Updated

April 14, 2025

How Resilient Retailers Can Navigate Economic Turbulence—and Win

Why Playing It Safe Won’t Work Anymore

Resilience is the new differentiator in retail planning. Flexibility, speed, and strategic investments set successful brands apart. The brands who come out stronger on the other side of this economy won’t be the ones who simply played it safe. They won’t be the ones slashed inventory, or waited for demand to stabilize before making a move.

They’ll be the ones who stayed sharp. Who doubled down on better processes, faster decision-making, and smarter investments. Because when uncertainty is the norm, resilience becomes the new differentiator.

Resilient brands don’t just react, they’re positioned to adapt. They can shift buying strategies, adjust assortments, and reforecast demand without starting from scratch. They have the tools to respond to market signals in real time and the confidence to act decisively.

They’re the ones who:

  • Embraced agility over inertia, choosing to stay proactive instead of reactive
  • Invested in better decisions over better discounts, preserving margin and customer trust
  • Made efficiency their competitive edge, freeing up teams to focus on strategy instead of manual firefighting

The Hidden Costs of Inaction in Retail Planning

In times like these, it can be tempting to hunker down. Delay decisions. Wait and see.

But here’s the hard truth: doing nothing is a decision too, and it usually costs more in the long run.

  • Overstocking leads to bloated inventory and margin-killing markdowns
  • Underbuying results in missed revenue and stockouts on high-demand SKUs
  • Manual workflows delay critical decisions and drag down agility

And the worst part? You don’t feel the pain all at once. It creeps in slowly, eroding margins, draining time, and limiting your ability to pivot when it matters most.

Industry Insights: Inventory Inefficiencies by the Numbers

🔺 Overbuying
The average retailer is overbought by ~20-30% on roughly 40-50% of their inventory.

According to McKinsey, markdowns due to overbuying reduce gross margins by 4-10% annually.
🔻 Underbuying
Retailers are underbought by ~15-20% on 20-30% of their key items or high-velocity SKUs.

IHL Group estimates that stockouts cost global retailers over $1 trillion annually in missed revenue.

How to Future-Proof Retail Strategy: 3 Key Levers for Growth

The good news? You can stay ahead, even when the market’s unpredictable and margins are under pressure.

But here’s the reality: uncertainty doesn’t reward hesitation. The brands who navigate turbulent times most successfully are the ones who invest in operational excellence, not just to survive, but to get sharper, leaner, and more agile in how they operate.

That starts with prioritizing three things: protecting margins, safeguarding revenue, and enhancing productivity. These aren’t just buzzwords, they’re the core levers that determine whether you’re adapting to the market or being dragged by it.

1. Protect Margins with Smarter Inventory Optimization

When costs are rising across the board, from sourcing to shipping to labor, your margins are constantly at risk. And in these moments, precision matters more than ever.

Brands who lack clear visibility into performance or rely on outdated planning methods often fall into the trap of overbuying, discounting too early, or missing opportunities to maximize full-price sell-through. Every one of those mistakes chips away at margin.

Toolio helps you protect margin in a few key ways:

  • Smarter demand forecasting means you buy closer to actual need, reducing excess inventory and markdown risk.
  • Accurate allocation decisions ensure the right products are in the right places, increasing full-price sell-through and reducing costly transfers or overstock.
  • In-season insights allow you to course-correct faster, optimizing pricing and promotions based on real-time data.

In tough economic conditions, margin protection becomes a strategic advantage, not just a finance concern.

2. Safeguard Revenue by Aligning With Real Demand

While cutting costs is often the go-to reaction during downturns, revenue protection is just as critical. In fact, many brands leave money on the table by failing to meet demand accurately or react to market shifts in time.

When you don’t have a clear view of where demand is headed, you risk understocking key items, missing trend signals, or holding back decisions due to data uncertainty. That slows the business and costs real sales.

Toolio supports revenue growth by:

  • Improving forecast accuracy so you’re stocking the products customers actually want, not what you think might work.
  • Enabling faster reactions to demand shifts, whether it’s doubling down on a bestseller or adjusting buys in-season.
  • Aligning planning and merchandising so the entire team is working from the same playbook, not siloed spreadsheets.

In other words, Toolio gives you the control to make timely, revenue-driving decisions even when the market throws surprises your way.

3. Boost Team Productivity with Centralized, Automated Workflows

In uncertain times, productivity gains don’t just reduce cost, they unlock better, faster decisions across the business.

If your teams are bogged down reconciling spreadsheets, chasing down updates, or managing disconnected systems, they’re not able to respond with the agility you need. Every delay becomes a risk.

Toolio helps teams:

  • Eliminate repetitive manual tasks by centralizing data and automating workflows
  • Collaborate more effectively across planning, buying, and merchandising functions
  • Reforecast in minutes, not days, and spend time on strategy, not spreadsheet wrangling

The result? More time spent on high-value work, more accurate decisions, and faster execution, all of which are vital when every move counts.

Real ROI: How Toolio Delivers Fast, Measurable Impact

When you’re under pressure, quick wins matter. That’s why Toolio was built for fast ROI.

One of our customers reduced excess inventory for $5M in expected savings by implementing Toolio. Another improved their forecasting accuracy and cut down costly overstocks, freeing up cash flow and protecting profit.

This isn’t a two-year digital transformation project. It’s results you can see in months, and ROI you can measure in dollars.

AKA Brands Logo

Stacey Schriefer

Vice President Inventory Planning

“Toolio was instrumental in showing our merchants that they could have 50-75% less SKU count and do the same amount of sales. We expect $5M in cost savings and efficiency gains.”

Who Benefits from Toolio? Tailored Value for Key Retail Roles

For Merchandising Executives: Make Leaner, Smarter Inventory Decisions

When margin pressure is high and demand is unpredictable, precision matters. Toolio gives Merchandising leaders the ability to tightly manage inventory, optimize assortments, and make smarter markdown decisions that protect profitability.

  • Plan precise assortments, using performance insights to inform buy quantities and mix
  • Maximize sell-through and minimize markdowns by aligning product availability to actual demand
  • Improve item-level performance across locations and channels

With Toolio, you’re not reacting to what happened last season, you’re shaping what happens next.

For Planning & Allocation Leads: Do More With Less—Faster

Your teams are under pressure to do more with less, and to do it faster. Toolio streamlines core planning workflows so planners can spend less time wrangling spreadsheets and more time driving the business forward.

  • Centralize / standardize data across channels, categories, and seasons for a single source of truth
  • Automate time-consuming tasks like plan reconciliation, open-to-buy tracking, and reforecasting
  • Reduce inventory holding costs by improving buy accuracy and in-season adjustments
  • Quickly pivot allocations based on demand signals or supply chain constraints

The result? Higher inventory productivity, fewer fire drills, and more strategic focus.

For IT Leaders: Simplify Your Stack and Support Growth

Toolio is built for modern retail tech stacks, cloud-native, API-first, and designed for ease of use for high user-adoption. We minimize implementation complexity and future-proof your planning infrastructure.

  • Integrates seamlessly with your ERP, POS, and BI systems to ensure clean, reliable data flows
  • Eliminate spreadsheet dependencies and legacy tech burdens
  • Scales fast with cloud-native, API-first architecture
  • Offers an intuitive user experience that accelerates adoption across teams

Toolio doesn’t just lighten the load on IT, it aligns your tech investments with business goals, helping your company become faster, smarter, and more resilient.

Why Toolio Matters in Uncertain Times

Toolio doesn’t just help you survive, it gives your business the infrastructure to thrive in uncertain environments. Whether it’s shifting consumer preferences, unexpected supply constraints, or macroeconomic turbulence, Toolio equips your teams with the clarity, visibility, and flexibility to navigate whatever comes next.

This is about long-term strength, not just short-term savings. With Toolio, your team becomes faster, your planning becomes smarter, and your strategy becomes more resilient. That’s how you turn disruption into opportunity.

Speak to an expert to see Toolio in action. Let us show you how modern brands are using Toolio to future-proof their planning and stay one step ahead, no matter the climate.

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