Retailers face peak season losses as supply chain woes persist

Most global retailers are still struggling to maintain smooth supply chain operations, despite early preparations for the peak holiday trading season, according to new research from DP World. The study, which surveyed senior logistics leaders within the retail sector, found that widespread disruptions continue to affect revenue, customer relations and boardroom priorities.

Reactive operations

The data reveals that 93% of retailers are still taking a reactive, or 'firefighting', approach to their supply chain management. This approach persists even as they enter the final weeks of a critical peak season. In addition, 91% of respondents reported revenue losses directly linked to issues in supply chain or transport logistics. This highlights that the operational challenges are not only persistent but are also having material effects on financial performance during the sector's busiest period.

Customer impact

Retailers are also seeing an increase in customer dissatisfaction related to delivery problems. Eighty-four percent said customer complaints linked to delivery performance had risen in recent periods. Nearly two-thirds have seen logistics challenges escalate to board level discussions over the past three years. These figures point to ongoing instability in retail supply chains, elevating logistics from an operational detail to a critical business issue.

Board-level escalations

The prevalence of board-level attention underscores the significance of these challenges. Delivery constraints and missed targets are undermining consumer confidence during the time of year when competition is most intense and margins are under significant pressure. Transport issues, especially during peak trading windows, are now seen as potential threats to overall business performance and reputation.

"Retailers are under extraordinary pressure to deliver reliability in a world where disruption has become the norm. This research shows that even the best-prepared businesses are being forced to react rather than plan, and that's where partnership makes the difference. Our focus is on helping customers move from firefighting to forecasting, building supply chains that anticipate disruption before it happens. By connecting data, infrastructure, and insight, we're giving retailers the resilience and agility they need to protect both revenue and reputation, especially during the moments that matter most to their customers." said Tony Zasimovich, Global Vertical Leader - Retail, DP World.

Investment priorities

The report identified a clear gap between where retailers are investing and the areas causing the greatest operational pain. Sixty percent of retailers are focusing on improvements in warehousing and supply chain visibility. However, only 43% are directing investment to customs compliance and 45% to international freight, despite 88% identifying border delays as a persistent challenge. This misalignment suggests vulnerabilities in the key links responsible for keeping goods flowing between markets.

Reliability challenges

Investment in capabilities that ensure goods can be moved consistently and compliantly was seen as lagging behind gains made in digital monitoring and inventory visibility. The report's data connect these shortfalls with increased risk of disruption during crucial trading periods, raising questions over the balance of focus between digital solutions and physical infrastructure improvements.

"Retailers have made strong progress in digital visibility and storage efficiency, but true resilience depends on keeping goods moving. Investment must now shift toward strengthening the flow itself, through reliable transport capacity, smarter customs processes and integrated data visibility. By connecting these elements, retailers can create supply chains that perform consistently, even in volatile conditions," said Beat Simon, Chief Operating Officer - Logistics, DP World.

Sector analysis

The findings are part of a broader study by DP World, covering 680 logistics leaders across multiple industries. Within retail, 75 senior decision makers participated, providing an executive-level perspective on the direct financial and operational impacts of ongoing supply chain disruption. The analysis links disruption costs with levels of logistics investment, company size, and potential reputational impact, offering detailed insight into how supply chain stability is affecting the wider commercial landscape.