“Eye on Inventory” Reports How Tariffs Disrupts Inventory & Sales Staff

September 28, 2025  by Karen Parrish in Business Strategy, Industry   

The July survey of 500 U.S. middle and senior store managers details how retailers are struggling to keep shelves stocked, customers satisfied, and establishments fully staffed.

Among the key findings:

Retailers report widespread inventory issues and slow spending since tariffs were introduced in April

• 76% of store managers have seen an increase in stockouts or empty shelves.
• Nearly six in ten (59%) say it’s become harder to keep stock replenished.
• 78% have noticed customers shopping early (such as for back-to-school season or the holidays) or in larger quantities to mitigate potential shortages or price hikes.
• Customers seem to be cutting back on spending overall. Retailers are 2.1x more likely to say customers are spending less than to say they’re spending more.

The worst may be yet to come. About half the managers in the survey have been warned by HQ to expect price increases (50%) or shipping delays or reduced inventory (47%) due to tariffs.

Stock issues are causing frustrated customers and lost sales

• One in four retail managers (24%) can’t find stock that their system says is on-hand at least once a day. 63% run into this problem at least once a week.
• They report a mean of 14 angry customer interactions per month related to stock location issues.
• 77% have lost sales because they couldn’t locate stock quickly enough.

“We see lots of managers operating with false confidence in their inventory visibility,” says Troy Siwek, General Manager, gStore by GreyOrange. “They underestimate how often products go missing on the sales floor because they don’t always hear about it. A customer might not ask for help if an item isn’t where it should be. Most of the time, they’ll just walk out.”

Staffing shortages, driven by a rocky economy, have had a noticeable impact on store productivity.

• About half (51%) of store managers have reduced their workforce in the last six months.
• Of those, 59% have laid off staff because of budget cuts; 42% because of low sales.
• 36% have skipped or delayed daily store tasks because they’ve lacked the workers to complete them.

Labor shortages remain one of the biggest challenges in retail, with employment levels still below pre-pandemic peaks.

“The less help managers have around the store, the easier it is for routine tasks to slip, whether that’s restocking a shelf or helping a customer locate an item. Tools that give retailers more visibility into their inventory and show staff what exactly needs to be done can help lean teams keep up,” says Siwek.

Despite tariffs and staffing cuts, retailers expect shelves to be ready for holiday shoppers. Nearly half (47%) say they’re more confident than last year about holiday stock availability, compared to 20% who feel less confident. However, this certainty varies by their proximity to on-the-ground store operations. Senior managers (55%) are more likely to feel assured about holiday stock than middle managers (42%), who are more exposed to the day-to-day realities of inventory problems.

“The fact that retailers are already pushing holiday merch could be a sign of this optimism,” says Siwek. “When they’re bullish, they flood shelves and build out big displays. When they’re bearish, they keep stock low and hold inventory in distribution centers. Retailers have spent the past few months shoring up their supply chains. They’re hoping those efforts will resolve their inventory issues in time for the holidays.”

Download the Eye on Inventory report for the full findings, including the list of most commonly skipped tasks due to staffing shortages.