How Retailers Can Get Ahead for the Holiday Season

With fall officially underway, holiday prep is ramping up for retailers. Between tariff uncertainty, lingering supply chain issues, and a more values-driven consumer mindset, the road to a strong year-end starts now. Retailers that plan early and act intentionally will have the advantage.

At Lightspeed, we work with thousands of retailers worldwide, giving us a close-up view of how agile businesses are adapting. The past few years have shown there's no “normal” holiday season. That unpredictability makes strategic, early planning essential. Retailers aren’t just reacting anymore; many are building flexible, customer-centered operations designed to weather volatility and outperform.

Start With What You Can Control: Inventory and Insight

Visibility and speed often matter more than scale. With supply chains still unpredictable, retailers are placing smarter bets using live sales data, multilocation inventory tracking, and demand forecasting. Centralized systems that link front-end sales with back-end inventory let businesses act on real-time insights, including identifying best-sellers, reallocating stock, and managing across channels.

Diversifying suppliers, automating replenishment, and integrating fulfillment options such as ship-from-store or in-store pickup are also proving effective. They require setup, but the payoff during peak season is significant.

The Customer is Changing — and Their Expectations Are Rising

Holiday shoppers are shopping earlier, across more channels, and with more purpose. In 2025, a First Insight survey found 53 percent plan to start before November to avoid tariff-driven price hikes. In March, U.S. retail sales surged 1.7 percent as consumers rushed to beat potential auto tariffs. Shoppers are being proactive and strategic.

Even with tighter budgets, customers are showing loyalty to brands that reflect their values. Lightspeed research found tipping of retail workers continues during the holidays. That generosity reflects a shift: shoppers are not only selective in what they buy, but who they buy from. Brands that show authenticity, prioritize ethical sourcing, and give back to communities earn stronger loyalty.

Rethink Sourcing to Protect Margins

With tariffs and volatility pressuring margins, sourcing decisions are critical. Diversifying suppliers reduces risk and improves flexibility. Seek out platforms that streamline wholesale ordering while enabling inventory performance reports to guide smarter purchasing by highlighting top-performing products and suppliers.

Healthy cash flow is also vital. Flexible financing options, such as merchant cash advances, can help retailers act quickly without traditional lending delays. In uncertain times, resilient operations, not just promotions, protect profitability.

Experience is the Differentiator

In a year of uncertainty, consumers are craving ease. Shoppers in 2025 aren't just looking for convenience; they're also looking for calm. Retailers that create low-stress, welcoming experiences will stand out. That means going beyond seamless transactions to create thoughtful environments, fast shipping, transparent communication, and channel flexibility.

Some are experimenting with cafés, lounges or hybrid spaces that invite customers to linger. At the same time, integrated systems that connect point of sale, inventory, loyalty, and e-commerce allow for a truly connected experience with personalized promotions, real-time product availability, and flexible fulfillment.

This isn't just about satisfaction, but growth. The less time teams spend reconciling siloed systems, the more they can focus on curating assortments, reacting to trends, and delivering experiences customers remember.

John Shapiro is chief product and technology officer at Lightspeed, a unified point of sale and payments platform.