Be the Hammer, Not the Nail

Uncertainty sucks. And unfortunately, as CPG leaders, we are in a period of exceptional tariff-driven uncertainty right now. Many of you are likely grappling with the immediate fallout: the scramble for contingency plans, supply chain disruption, and the looming pressure of price hikes. You aren’t alone. Walmart is warning of impending price increases, which I’ll talk about more in a bit. Major consumer goods companies are cutting, or altogether suspending, Wall Street guidance. Mentions of “Uncertainty” jumped 49% in Q1 earnings calls, along with a 190% increase in mentions of “Tariffs.”

But, what if you could turn this uncertainty into an advantage for your brand? What if you could differentiate yourself and your category management team during this turmoil by bringing a new level of retail management agility? What if you could be the hammer, and not the nail?

What I’d like to propose today is that this time is actually an amazing opportunity for you and your category. By leveraging your access to real-time retail intelligence, and the new operating motions that become available as a result, you can embrace shelf volatility as the strategic opportunity it is: asserting your leadership through informed agility.

The Tangible Impact of Tariffs on the Shelf

The implications of tariffs are far from theoretical, they are materializing on shelves across the nation. In my eyes, I see the market responding with:

• Shelf volatility and changing product availability. This is no surprise to you, but tariffs reshape global supply chains, and many FMCG brands—including many of our own clients—are actively exploring new sourcing avenues. This leads to the rise of some products and the decline of others, directly impacting category assortment and shelf availability. We’ve seen that keeping a real-time pulse on these shifts is critical.

• Pricing fluctuations. The pressure to increase prices is mounting; Walmart told us so in their May earnings call. We've heard from industry players, including a leading US household kitchen supply client, who voiced the need to closely monitor their competitors pricing strategies. This has helped inform their own pricing decisions and negotiations.

• Emerging competitors. Tariffs can inadvertently create opportunities for new entrants, or allow existing smaller players to gain traction, as larger competitors grapple with increased costs and supply chain issues. Identifying these emerging threats and opportunities requires constant vigilance and understanding at the shelf level.

How Category Leaders are Acting with Data

It is all about acting with informed agility. Getting real-time visibility of your products on shelf is an ongoing opportunity to stay ahead—no matter the economic climate. Relying on only historical or POS data is like navigating a storm using yesterday's weather report. Here’s how I see leaders in the CPG space bringing a new level of operating agility:

• Leveraging competitive price monitoring. With international imported products impacting cost, it’s crucial to keep a close eye on how your competitors are responding with their shifts in pricing. A few of our leading chocolate and beauty brands have both shared that tracking competitor price adjustments in real-time have affected their own pricing strategies and retailer negotiations.

• Shifting into Agile Mode. We’ve noticed that brands that have set up war rooms: acting based on current shelf conditions from their competitors as a "fast follow" strategy. Collaborating around real-time shelf data enables swift reactions to competitor moves, allowing you and your organization to nimbly adapt your strategies.

• Identifying new opportunities. One of our leading US stationery companies is identifying shelf space opportunities arising from competitors impacted by tariffs. As their own workloads and contingency plans have skyrocketed, they’ve shifted their mentality by using these tariffs as an opportunity to close in on other competitors in the market via shelf space and distribution. I’d suggest viewing how real-time data can illuminate similar openings within your own category.

• Leaning into dynamic promotion planning. As we likely head into more disruptive economic volatility, the market demands flexible promotional strategies. Real-time insights into competitor promotions and overall shelf conditions allow for more agile and effective promotional planning.

• Ramping up inventory monitoring. Disruptions in the supply chain necessitate constant monitoring of both your own and your competitors' inventory levels to anticipate potential out-of-stocks and adjust strategies accordingly.

• Emphasizing cross-team collaboration. Real-time data fosters crucial collaboration, both internally across your teams by providing a shared source of truth, and externally with your retail partners, enabling proactive problem-solving for potential disruptions.

Future-Proofing and Thriving in the Unknown

Navigating this turbulent environment requires a forward-thinking approach. Our team of seasoned CPG veterans and I at Storesight recommend these practices when facing these pressures:

1. Embrace the "War Room" Mentality. By adopting a proactive stance, establishing processes for continuous monitoring, rapid analysis, and swift responses to market changes will leave you in a stronger position.

2. Invest in the Right Tools: Platforms like Storesight — especially Storesight AI — give a major advantage to shelf-level data and retail intelligence to navigate this complexity effectively. By closely monitoring pricing, promotions, and your product on shelf across the country in near real-time, you’ll have access to make faster, smarter decisions. Existing POS and inventory measurement data platforms are typically 1–4 weeks delayed, which can cause major lags in decision-making. Getting a near real-time viewpoint of your product on shelf provides a game-changing advantage. Additionally, getting shopper-level insights can drastically improve your go-to-market strategies from week to week.

3. Build Agility as a Core Competency: Cultivate flexibility and adaptability within your category management strategies and team culture. The ability to pivot quickly will be a defining factor in success.

By stepping into these principles and leveraging the power of real-time retail intelligence, category management professionals can not only weather the current economic storm but also emerge stronger and more strategically positioned for future success. If you have questions about how to best leverage your products on shelf during this time and beyond, reach out to us.