**London**: In a tumultuous economic climate, retailers face rising tariffs and shifting consumer habits. Gatik’s CEO Gautam Narang underscores the importance of efficient supply chain management to maintain customer loyalty amid rising prices and competition from discount chains.
Retailers are currently navigating a challenging economic landscape marked by rising tariffs, which are intensifying scrutiny on their operations and pricing strategies. Gautam Narang, CEO and co-founder of Gatik, has highlighted the growing importance of effective supply chain management for retailers under these conditions. Speaking to Business Wire, Narang emphasised that “in a margin-squeezed economy, loyalty isn’t earned with marketing. It’s earned by protecting your customers.”
As inflation prompts consumers to reassess their spending, customer loyalty is increasingly tied to a retailer’s ability to manage costs effectively. Recent consumer data reveals that 70% of U.S. shoppers have altered their grocery purchasing habits due to price increases, with 35% switching retailers for greater affordability. Discount and private-label chains are witnessing a surge in loyalty and market share, signalling a shift in consumer preferences during financially stringent times.
According to Narang, traditional methods of securing customer loyalty through advertising are becoming inadequate. “It’s about shielding customers from volatility by running smarter behind the scenes,” he stated. This shift in focus means that retailers must improve their operational efficiency, particularly in logistics, by utilising advancements like autonomous delivery systems.
Gatik has carved out a niche in the middle-mile logistics sector, providing medium-duty autonomous trucks for transporting goods between warehouses and retail locations. This allows for increased delivery frequency and cost efficiency, which Narang describes as a “high-stakes differentiator” in contemporary supply chains. The middle-mile, historically overlooked in the logistics framework, could account for a significant portion of delivery costs, and optimising this segment can lead to substantial financial savings for retailers.
Narang pointed out that “the short-haul segment between warehouses and stores is traditionally one of the least optimized and most expensive,” which underscores the potential for cost reductions through Gatik’s technologies. By enhancing operational efficiency, Gatik aims to help retailers maintain competitive pricing amidst fluctuating costs.
Consequently, retailers are urged to embrace innovative solutions and smart operational practices to sustain customer loyalty in a volatile market. As Narang asserted, “in a world where you can’t negotiate lower tariffs or make better deals than your competitors, the brands that win are the ones that run leaner, faster, and smarter.” This evolving retail landscape showcases the critical intersection of supply chain management and customer retention strategies.
Source: Noah Wire Services
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