Amid economic uncertainty, the ability of retail and consumer companies to leverage emerging technology, explore international markets, and prioritize customer relationships is increasingly vital. Forvis Mazars interviewed Lindsay Conley, national leader for the Consumer and Logistics sector at Forvis Mazars US, to discuss the general market outlook for this key sector and perspectives on topics such as international expansion, emerging technology, and sustainability—and the opportunities that await companies as they look to the future.
Read on for her insights:
Current & Emerging Retail & Consumer Industry Trends
Question: Economic uncertainty, increased competition, and supply chain restrictions are seen as factors limiting growth by retail and consumer companies. What are your thoughts on how these factors are likely to play out in the remainder of 2025 and beyond?
Conley: I think there will be some moderate growth for consumer and retail companies, although it will depend on various circumstances, such as geographic markets.
There is still some uncertainty in the market, and we will continue to see consumers and companies not deploying funds as quickly. Interest rates are still a factor and there are still some inflationary pressures that are not only impacting companies but also consumers and their spending habits. Nowadays, consumers are more value-conscious and more selective in their purchasing habits as they look at premium brands, doing more research on the front-end before making those purchases—and certainly there are more tools readily available to the consumer as they do their research and examine their spending habits.
On the company side, margins continue to be a factor. It’s very competitive and there is some pressure there. Looking at key performance indicators (KPIs) and margins: how can companies be competitive with pricing but also keep their consumers? Something that we continue to hear within our client base—particularly when thinking about supply chain—is the opportunity in leveraging artificial intelligence (AI). Looking ahead, there’s a real opportunity if companies are willing to take the time to look at emerging technologies and AI implementation. Investing time in these pursuits could help with increased labor costs, and costs more broadly, to improve their bottom line.
Technological Innovation in Retail & Consumer
Question: With AI, consumers and companies are trying to put themselves in a position where they can move forward, and as you said, take some strain off costs, supply chains, and operations amid economic uncertainty and market volatility. Is there anything else you would like to share on that topic?
Conley: The prevailing wisdom is “proceed with caution” with AI. Companies know they need to be doing something, but that it’s going to have a cost. AI is going to require companies to encourage their team members to look at processes differently. There’s some fear that if you bring in AI, people will be out of a job, but we continue to hear within the industry and from clients that AI is not necessarily going to replace jobs. Rather, it will give people who are in these positions the opportunity to be more strategic in how they think about their work, how they perform their role, and how the company accomplishes its goals.
I do think if companies are looking the other way when it comes to AI, that they might be left behind. Even if they take it slow, but are putting a plan in place, talking to competitors and others in the industry, they’re moving in the right direction.
There’s also the question of how you are targeting your consumers. Younger generations expect a certain level of AI—for them, it’s more about the experience and higher, more premium brands. If your company is able to attract consumers at a younger age and get them to develop that loyalty to that brand or that product, they might be with you for a number of years.
Question: What is the current outlook for international retail and consumer businesses looking to expand in the U.S., and how should they react to those challenges?
Conley: The U.S. will continue to be an attractive market for international consumer brands, and there are certainly a number of regulations that international firms will have to be aware of—particularly when looking at environmental, social, and governance (ESG), safety, union, and employment laws. The other thing to be cognizant of is what incentives are being put in place by President Donald Trump and others, such as the Made in America Initiative, which continue to evolve over time. For example, if a company is looking at establishing a manufacturing facility in the U.S. at some point, it must recognize that there’s a cost and benefit, but those types of programs and incentives continue to change. Building a facility in the U.S. and moving an entire manufacturing facility is not an easy, overnight decision. There are myriad factors that come into play when exploring that.
Question: On the topic of emerging technology, based on your experience with clients, in what areas are retail and consumer businesses embracing emerging tech and AI? Any other types of technology on the horizon and how can good governance play its part? What do companies need to be mindful of when they are looking at emerging technologies such as AI?
Conley: A couple of prevalent examples within our space are in warehousing and logistics. We see AI helping with those areas, and it’s also improving costs and increasing efficiencies. I think with logistics we have seen AI be used to identify optimal routes—looking at weather conditions, traffic, or potential disruptions that could cause a delay in those shipments getting to the end consumer.
Cybersecurity is also very relevant, especially when you think about customer data. We continue to talk with our clients about the importance of having a risk and recovery plan in place, and whether they have insurance that covers cybersecurity claims or managed cybersecurity services.
Sustainability in Retail & Consumer Goods
Question: Finally, how can consumer and retail companies show sustainability to the end customer? Have you had any conversations with clients about that, and what are your thoughts are on it?
Conley: We continue to see changing regulations with respect to ESG. Certainly it’s prevalent in the state of California. However, we are seeing other states follow suit and we fully expect that other states will continue to put additional compliance reporting regulations in place. At Forvis Mazars, we aim to inform our clients, so that they are aware of the requirements, and make sure they understand how these regulations might impact them. Many companies may not know they are subject to some reporting requirements and compliance exercises.
For the end consumer, packaging, labeling, and the type of products they are buying are important. We are seeing a number of consumers looking to international products that might be of higher premium—because quality matters and the brand aligns with their values. It’s your brand and the trust that you build that also matters. If firms are not holding up their end as far as what they need to be doing with respect to ESG, what does that say to the consumer, to their clients, and industry partners?
As market conditions and regulatory mandates continue to evolve, consumer and logistics companies need a trusted advisor who can help them identify opportunities for the future. Forvis Mazars is here to help you navigate the evolving sector landscape. For more information, please reach out to a professional at Forvis Mazars.