Could the Iran War Impact Retail?
How a Strait of Hormuz Disruption Could Affect Retail Operations

By the D&D Daily staff

The Strait of Hormuz handles roughly 20% of the world’s seaborne oil trade, making it one of the most important energy chokepoints globally. While retail companies do not operate in the region directly, a disruption there could have meaningful consequences for retail operations worldwide.

The most immediate effect would likely be higher fuel costs. Retail is heavily dependent on transportation — from international ocean freight to domestic trucking and last-mile delivery. A spike in oil prices would increase distribution expenses across the board. For large chains operating regional distribution centers and store replenishment networks, even incremental fuel increases can materially impact margins.

Higher energy prices would also influence supplier costs. Many retail categories — including apparel, electronics, home goods and packaged products — rely on energy-intensive manufacturing processes and global shipping. If suppliers face higher production and freight expenses, those costs may be passed along the supply chain. Retailers would then face decisions about absorbing costs, adjusting pricing or renegotiating contracts.

Shipping timelines could become another pressure point. If geopolitical instability disrupts key maritime routes or raises insurance costs, transit times may lengthen and freight rates may climb. Retailers operating on lean inventory models may need to increase safety stock levels, tying up working capital and increasing warehousing demands. Seasonal merchandise and promotional planning could become more difficult if shipments are delayed.

Beyond operational costs, consumer demand may shift. Rising fuel and utility prices can strain household budgets, reducing discretionary spending. Retail segments tied to non-essential purchases may feel those effects more quickly than value-oriented or essential goods categories.

The overall impact would depend on how long any disruption lasts. Short-term volatility can often be managed through diversified sourcing, freight contracts and pricing strategies. A prolonged shutdown, however, would place sustained pressure on logistics costs, inventory planning and consumer demand.

For retail leaders, the situation reinforces an ongoing priority: building resilient supply chains capable of absorbing geopolitical shocks, even those occurring thousands of miles from the sales floor.


2,000 Retail Tariff Lawsuits
Trump Faces 2,000 Tariff Lawsuits Following Supreme Court Loss
In the days since the US Supreme Court declared most of President Donald Trump’s global tariffs illegal, more than 100 companies filed new lawsuits, underscoring widespread concerns that the administration won’t readily refund the billions of dollars it’s already collected.

Public companies and household names are joining the clamor. FedEx Corp. filed suit on Monday, followed by Dyson Inc., Dollar General Corp., Bausch & Lomb Inc., Brooks Brothers, and Sol de Janeiro USA Inc. Units of cosmetic giant L’Oreal SA and shoe companies On Holding AG and Skechers USA Inc. also filed suit to recoup what they’ve paid on imports.

The justices were silent on the refund question, leaving questions of payback to the New York-based US Court of International Trade.

On Friday, the Justice Department is due to weigh in on immediate next steps in the original litigation that went before the Supreme Court, which could indicate how quickly – or slowly – the government is willing to move to resolve the mounting claims.

Trump has suggested his administration might oppose refunds, or at least not make the process easy for the importers that have paid more than $170 billion in tariffs in the past 10 months. “I guess it has to get litigated,” he said after the Feb. 20 ruling, speculating it could take years to play out.

The latest cases have pushed the total number of tariff lawsuits above 2,000, according to a Bloomberg News analysis. It’s already a hefty caseload for the trade court to manage and represents only a small fraction of the hundreds of thousands of importers that paid the tariffs that the justices struck down. finance.yahoo.com

   RELATED: Retail brands want their tariff money back


Walmart Battles Amazon on Groceries
Grocery Battle Shifts to Loyalty as Walmart Dominates and Amazon Expands Digital
When it comes to the Amazon-Walmart competition, grocery has become a key battleground. Why? It’s the closest thing U.S. retail has to a weekly subscription. Win the cart, and you earn repeat trips and durable customer habits. That’s why recent consumer-tracking data showing Walmart’s grocery penetration at a record 72% of U.S. households lands as more than a headline. The same tracker says Walmart now serves more than 190 million Americans each month.

That makes for good watercooler talk, but the clearest way to compare Walmart and Amazon in grocery is share of wallet. In the PYMNTS Intelligence Share of Wallet: Amazon vs. Walmart series, Walmart captured 20% of all U.S. dollars spent on food and beverages in Q3 2025. That strength also explains Walmart’s profile: the report estimates food and beverages represent about 60% of Walmart’s total sales. Amazon’s mix is the reverse. Its biggest gains are in discretionary categories, and food and beverages account for only 7% of its retail sales.

Amazon’s response has been to make grocery less about stores and more about speed. In January, Amazon said it will close its Amazon Go and Amazon Fresh physical stores, convert various locations into Whole Foods Market stores, and open 100+ new Whole Foods locations over the next few years. It also highlighted same-day delivery of perishables and said perishable grocery sales through that service have grown 40x since January 2025. pymnts.com


Fighting Employee Burnout
Walgreens introduces 'hybrid pharmacist' role in six states
Walgreens is rolling out a new 'hybrid pharmacist' role in an effort to combat burnout and workforce gaps among its employees.

The program, which allows pharmacists to work both in-store and in centralized settings such as regional support sites, micro-fulfillment centers, and approved work‑at‑home environments, is a “first of its kind” role, according to the pharmacy retailer.

In a blog post on Walgreens’ website, content development manager Mike Huffman noted that the hybrid role offers predictable schedules, varied pharmacy practice settings, and can expand pharmacy career pathways without leaving direct patient care behind.

So far, the hybrid pharmacist position has been rolled out in six states: Arkansas, Missouri, Minnesota, North Carolina, Oklahoma and Tennessee. Walgreens says that early feedback and interest in the role have been strong, with participating pharmacists noting the “increased flexibility” and “differentiated work experience” as key benefits. chainstoreage.com


Overall Retail Sales Up Nearly 4% in 2025
Colliers: Retail sales posted 3.7% growth in 2025
Holiday shopping and events such as Prime Day and Black Friday made up for lackluster spring and summer sales performance at retail, moving overall retail sales up by nearly 4%, according to a 2025 Recap Report from Colliers Retail Market Intelligence.

Volume growth, however, softened meaningfully (often below 1%) due to increasingly cautious consumer behavior. Shopper reliance on promotions, credit card usage, and value channels “underscored a consumer who remained active — yet highly selective,” read the report.

Consumers were guarding their pocketbooks last year. Foot traffic was highest at discount and dollars stores, with a 5% year-over-year rise to nearly 320 million visits. chainstoreage.com


Block lays 4,000 workers, or about 40% of its workforce

JLL: Grocery-anchored centers notch the highest occupancy rates

Macy’s kicking off year of celebrations to mark two milestones


Last week's #1 article --

'Shopping in a Prison'
Walmart and Target Are Locking Up Toothpaste in Some Stores
Across parts of the country, retailers have expanded the use of locked cabinets and security measures in stores they say are experiencing high levels of theft. While not every location is affected, in some areas customers now have to press a button and wait for an employee just to grab basic household essentials.

On social media, frustrated shoppers have described the experience as inconvenient, slow and, in some cases, “like shopping in a prison.” Retailers say the changes are tied to rising theft and what the industry calls “shrink” — inventory lost to shoplifting, organized retail crime and other factors.

It’s important to note: not all Walmart, Target or CVS locations lock up toothpaste. These measures are typically implemented store-by-store based on local conditions. But in areas where security cases are in place, shoppers say the inconvenience adds up — especially for parents grabbing baby formula or customers making quick errands.

Some customers argue the extra steps slow down shopping and increase wait times if employees are stretched thin. Others say they understand the reasoning but wish there were better solutions.

Retail chains maintain that the goal is to protect merchandise while keeping stores open and accessible. Industry groups say organized retail theft has become more coordinated in recent years, prompting stores to experiment with more visible security measures.

Whether these locked cabinets remain temporary or become more common nationwide remains to be seen. But for now, in certain communities, buying toothpaste isn’t quite as simple as it used to be. aol.com