Our Global Director of Retail Strategy, Melissa Minkow, joined CNBC’s Squawk Box Europe to discuss the current US retail environment ahead of major retailers' Q2 earnings announcements. Melissa shared her thoughts on some retailers' decision to pull large quantities of inventory forward, as well as how US consumers are approaching spending. Here are the key highlights from the conversation and the implications for UK retailers:

A Flood of US Inventory

Inventory pulled forward by retailers in the US is being sold at a discount and driving short-term sales growth. During peak COVID, we saw retailers implement this same practice, which ultimately left them holding onto off-trend products that they could no longer sell at a profit. For now, this may sound great for shoppers: lower prices that feel like a lifeline in an unstable economy.

Eventually, though, US consumers will likely find many of these items uninteresting. When those items are not sellable in the US, there is the potential for them to be sent overseas to the UK.
For UK retailers selling in both the US and UK, this means that they’re not just competing with low US prices in the US. They’re also competing in the UK against lower-priced US items, which could result in price distortion and some margin erosion.

While economic pressures are driving huge changes globally, a key (and sometimes overlooked) point is that the UK and US markets are not two sides of the same coin. They require different strategies, different rhythms, different technology stacks.

An opportunity for the UK

As it becomes more expensive for UK brands to send goods to the US, UK branches of global retailers could end up with the assortment originally intended to be sent overseas.

When it's time to export to the US, the strategy should be laser-focused. Reserve US shipments for differentiated, high-margin, high-readiness products that are a sure bet.

It's About Timing, Not Just Forecasting

The UK winners in this new era will be the ones with the most responsive systems and most thorough data capture capabilities.

AI-powered supply chains, dynamic pricing, and real-time demand signals will ensure the US market entry and maintenance that is most lucrative. By modernising data technology, brands can make decisions like a stock trader, timing their moves to maximise profit. Precision and flexibility are key.

The retail climate will eventually stabilise, but the need for more complex, faster operations won't. Retailers who act now, treating their markets as distinct and upgrading their data ecosystem to guide their timing, will set themselves up for success.

CI&T is helping global retailers unlock that agility, with AI-first platforms that tie pricing, inventory, and cross-border operations into one responsive layer. No more guesswork. Just intelligent action, in the market, at speed.

Our AI-powered platform CI&T FLOW helps retailers gain visibility into timing product pushes and adjusting their offers to local signals - not just global forecasts.

This isn’t just digital transformation. This is business model proactivity - backed by insight, not inertia.

CI&T is helping global retail brands lead with AI, not lag with guesswork.

If that sounds like your next move, let's talk.

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