Reasons to Read

Uncover how retailers are navigating tariff risks, inventory divergence and digital transformation to protect margins in 4Q25.

Read this report to discover answers to these and other questions:

• How are retailers like Ulta, Bath & Body Works and Kohl’s adopting diverging inventory strategies in response to uneven demand and tariff pressures?
• In what ways are tariff-driven cost timing and accounting methods distorting reported margins at companies such as Costco and Williams-Sonoma?
• Why are value-led and club formats like Dollar Tree, Walgreens Boots Alliance and Costco outperforming peers on inventory turnover?
• How are early receipts and digital tools-including AI-based replenishment-shaping inventory visibility and seasonal readiness for players like Gap, Walmart and Urban Outfitters?

Companies mentioned in this report include: Abercrombie & Fitch, Aritzia, Bath & Body Works, Best Buy, BJ’s Wholesale, Costco, CVS Health, Dollar Tree, Five Below, Gap, Home Depot, Kohl’s, Lowe’s, Macy’s, Ross Stores, Target, TJX Companies, Ulta Beauty, Urban Outfitters, Walgreens Boots Alliance, Walmart, Williams-Sonoma and more.

Data in this report include: US retail sales growth by month; inventory turnover ratios by retailer and sector; year-over-year changes in inventory values; and commentary on strategic inventory actions across leading US retailers.