Are You Ready for the 2025 Retail Peak Season? With Sucharita Kodali From Forrester

Now that we’re past the halfway point of the year (can you believe it?), it’s time to get serious about peak season. When handled right, peak is an opportunity to drive more sales than ever, reach new markets, and continue to delight loyal customers. But will tariffs, inflation, and other issues stand in the way? Sucharita Kodali, retail industry analyst at Forrester, explains exactly what’s going on in the retail industry, what we can expect from the 2025 peak season, and how to get ready. What’s the current state of retail?It’s no secret that the past few months have been full of economic uncertainty for both consumers and businesses. Sucharita says that while essential goods are still in high demand, retailers that sell non-essentials may be struggling.“There is a particularly uncertain vibe [due to] … not knowing where the tariff situation may land, as well as consumer confidence not being terribly high, which means that a lot of discretionary items are more vulnerable.”What can retailers expect from peak season 2025?Sucharita points out an interesting contradiction: while consumer confidence has been “quite low,” spending levels in 2025 are still relatively high—even when adjusted for inflation. That’s good news for businesses moving into the holiday season.Even so, she predicts that peak season will see heavy discounting as usual (consumers, rejoice!) unless brands face major supply chain issues.She notes, “There's no reason to hold onto inventory and hoard it. So unless there's a supply shock, I can't envision a scenario where it's not going to be another heavy discounting season.”Should businesses frontload inventory?The decision to frontload inventory depends on many factors, including storage and transportation costs, margins, categories, and anticipated demand. According to Sucharita, “Perhaps the biggest issue is [whether] you have cash. If you don't have any money and you don't have any savings, does it make sense to put yourself in credit card debt? No.” So if you’re thinking about stocking up ahead of peak season, make sure your cash flow can support the extra costs you’ll incur.LinksConnect with Sucharita on LinkedIn: https://www.linkedin.com/in/sucharitamulpuru/Visit Forrester’s website: https://www.forrester.com/bold/