VendorWorld:
April 30, 2025

Today's Top Story

Time for Recess?

It's a terrifying word: recession. It evokes words like looming and feels like an impending storm. Is one coming? Are retail suppliers ready for it?

Here's what we know so far:

On April 15, 2025, J.P. Morgan Research reported¹ a 60% probability of a recession, and on April 30, the Commerce Department announced a GDP reversal² as it shrank by 0.3% annually last quarter. Consumer confidence³ has fallen to a 13-year low, largely due to job market fears and concerns surrounding the stock market.

There is quite a bit of volatility in consumer spending as a result. Due to the fear of price increases from tariffs, consumers began panic-buying⁴ items such as luxury skincare goods from South Korea, and pre-tariff spending boosted import sales⁵ by 27.5% in March. Meanwhile, discretionary spending⁶ is down, and more consumers are turning to private brands⁷.

While jobs remain steady⁸, with unemployment at 4.2%⁹, small businesses in particular are feeling the pinch¹⁰ of the trade war. In addition, the supply chain is reeling¹¹, and stockouts are high¹² as U.S. ports begin to see significant drops in cargo.

What can retail suppliers do to stay in business in the face of a possible recession? Building a resilient supply chain is a good first step. We found that many retail suppliers are losing 3–8% of their revenue in invalid deductions, which you can dispute. Talk to us today to find out how much you can recover.

Image via Adobe Stock