Retail C-suite leaders underestimating impact of geopolitical risks on their operations amid Trump chaos

Rumblings of a global trade war, plus a tumbling US stock market, mark week seven of the Trump administration.

Against this backdrop, 66% of C-suite and operations leaders say they are confident or very confident that they can effectively mitigate the impact of geopolitical risks on their supply chain over the next five years, according to a survey of 600 global executives (across 12 sectors including retail and e-commerce) by Argon & Co.

The research points to a growing need for businesses to strengthen operational resilience, as growing geopolitical volatility associated with the United States, China, Russia, and the Middle East are reshaping supply chain and sourcing strategies.

Industries with complex, global supply chains and extensive experience in managing geopolitical disruptions exhibit higher confidence levels, including life sciences (83%), logistics (82%), and fashion (73%). Yet, these industries also face some of the most significant exposures to these risks, including increased costs due to tariffs and disruptions to shipping routes.

The relative lack of major disruptions over the past 12 months compared to the previous five years is fostering complacency, with just 25% of C-suite leaders citing geopolitical uncertainty as a major challenge impacting their operations over this period. However, intensifying trade tensions and protectionist policies means many leaders may be underestimating the scale of upcoming operational disruptions.

“There is a real danger present that operations leaders are overestimating their ability to withstand geopolitical risks – especially as we see tariffs being slapped on worldwide, regional conflicts intensifying, and disruption to major trade routes,” says Ben Wright, Managing Partner at Argon & Co.

“C-suite leaders cannot bury their heads in the sand – just surviving the previous issues doesn’t mean they can deal with these ones. Adopting a ‘resilience by design’ approach - like alternative sourcing models or relocating logistics hubs - will be crucial to shore up their defences. If Plan A fails, leaders must have Plans B, C, and D in place and ready to execute.”

The research also found that C-suite leaders are struggling to balance competing priorities in managing disruption. Key findings are:

• Severe strain on supply chains: 55% of C-suite leaders report experiencing severe or substantial disruption to their supply chains over the past year, influenced by factors such as inflation, labour shortages, technological advancements, and global political uncertainty.

• Sustainability gaps: Only 34% of respondents feel fully prepared to meet Scope 3 sustainability requirements, highlighting a shortfall in ESG readiness.

• Technology as a disruptor: Keeping pace with rapid technological changes, such as AI and automation, was the biggest challenge for C-suite leaders over the past 12 months, cited by 49% of respondents.

In terms of areas where C-suite and operations leaders would like to see increased government support in mitigating the impact of future disruptions on their operations, 76% advocate for increased investment in emerging technologies, including AI, smart warehousing, and data analytics.

A further 65% call for greater investment in workforce development, such as apprenticeship schemes, to build future ready talent pools. Reducing red tape in supply chains and logistics is cited by 51% of respondents.

Wright concludes: “Today’s operations are shaped by a web of geopolitical uncertainties and trade disruptions, and this complexity means businesses can’t rely on past playbooks. This research shows an overwhelming demand for agility, resilience, and end-to-end visibility in our operations. This requires a real shift from reactive risk management to long-term, strategic planning - cutting through competing priorities and focusing on what truly drives value.”

2025 RTIH INNOVATION AWARDS

Supply chain technology will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which will open for entries in March, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.