We’ve talked in the past about how UK retailers are facing a multitude of challenges. The combined pressures of economic challenges, evolving consumer behaviour, and heightened awareness of social and environmental issues are reshaping the retail landscape. With e-commerce gaining increasing prominence, competition is fiercer than ever, and rethinking procurement strategies is essential for retailers to remain competitive and resilient.
As a procurement consultancy with expertise in the retail sector, Accelerate are spearheading effective procurement in retail, with a spotlight on maintaining competitive advantage, meeting customer expectations, and driving profitability. Whether you’re managing seasonal inventory, negotiating supplier contracts, or ensuring sustainability compliance, the way retailers approach procurement can significantly impact their success.
Here, we’ve shared some key insights to help retailers optimise their procurement strategies in 2025.
1. Prioritise supplier relationships
Strong supplier relationships are the backbone of successful retail procurement. Reliable suppliers ensure consistent product quality, competitive pricing, and timely deliveries: all critical factors in a sector that operates on tight margins and schedules.
How to achieve this:
- Communicate clearly: Maintain open and transparent communication about expectations, timelines, and potential challenges.
- Collaborate: Work with suppliers to co-create solutions, from cost saving measures to innovative product designs.
- Evaluate regularly: Conduct performance reviews to ensure suppliers meet quality, cost, and sustainability standards.
2. Embrace technology
The retail sector is increasingly leveraging digital tools to streamline procurement processes and make data driven decisions. From inventory management systems to AI-powered analytics, technology offers retailers unprecedented control and insight into their supply chains.
Technologies to consider:
- Procurement platforms: Automate tasks like sourcing, purchase orders, and invoice processing.
- AI and predictive analytics: Use AI to forecast demand trends and optimise stock levels, reducing overstocking or shortages.
- Blockchain: Enhance transparency and traceability, particularly for retailers committed to ethical sourcing.
3. Balance cost and quality
While cost cutting is always a priority, focusing solely on price can compromise product quality and customer satisfaction. Striking the right balance ensures retailers meet their financial goals without sacrificing their brand reputation.
Tips for success:
- Total Cost of Ownership (TCO): Consider long term costs like durability, warranties, and after sales service when evaluating suppliers.
- Test before you invest: Conduct quality checks or pilot runs before committing to large orders.
4. Build sustainable supply chains
Today’s consumers increasingly expect brands to prioritise sustainability. Retailers that embrace sustainable procurement practices not only reduce their environmental impact but also strengthen customer loyalty.
Steps to take:
- Set clear goals: Align procurement practices with your company’s sustainability targets, such as reducing carbon emissions or sourcing eco-friendly materials.
- Certify suppliers: Work with suppliers who hold recognised environmental certifications or follow ethical labour practices.
- Monitor progress: Use tools to measure the environmental and social impact of your supply chain.
5. Stay agile
Retail is a dynamic industry, subject to shifting consumer trends, economic fluctuations, and global disruptions. An agile procurement strategy allows retailers to adapt quickly, minimise risks, and seize new opportunities.
Best practices:
- Diversify suppliers: Avoid over reliance on a single source to mitigate risks like delays or shortages.
- Monitor market trends: Stay informed about changes in consumer behaviour, raw material prices, and industry innovations.
Procurement success in the retail sector
Effective procurement is a cornerstone of retail success. By fostering strong supplier relationships, embracing technology, balancing cost and quality, prioritising sustainability, and maintaining agility, retailers can build resilient supply chains that meet challenges and prepare for opportunities.
With the right strategies in place, sourcing success is within reach for every retailer. At Accelerate, our team of procurement consultants have years of experience working within the retail sector. If you need advice when it comes to your procurement strategy, get in touch to see how we can help.