Overview of Retail's Shifting Risk Profile
Retail Risk Outlook and Strategies for Success in 2026
The risk profile of the retail industry is shifting rapidly due to factors like supply chain volatility, cargo theft, and ransomware attacks. Market conditions are mixed — while overall commercial rates have eased in places, lines like casualty and umbrella/excess continue to hold firm.

In 2026, retailers with greater exposure to physical crime, hazardous or high-liability products, or weak risk management controls may face tighter underwriting and higher deductibles. Staying ahead of market trends and strengthening loss control measures may be able to help retail organizations secure more favorable insurance terms.

Geopolitical Risk - Many retailers are reimagining their supply chains with strategies like offshoring, nearshoring, and supplier diversification due to factors like ongoing geopolitical tension, trade policy, and tariff pressures. As supply chain concerns and geopolitical conditions evolve, organizations should review how their current insurance programs protect their goods and operations.

Organized Crime - With economic pressures rising, retailers may begin to see an increase in criminal activity. In a 2025 study from the National Retail Federation, 67% of retailers reported the involvement of a transnational ORC group in thefts against their company during the past year. These crimes go beyond physical merchandise theft – more than half of retailers surveyed also reported increases in phone scams (70%), digital and ecommerce frauds (55%), and cargo or supply chain thefts (50%).

Cyber Risk - E-commerce is becoming increasingly complex, providing more entry points from which threat actors can launch cyber attacks. Potential targets include point-of-sale systems, third-party software integrations, and e-commerce platforms, which can affect both physical and digital storefronts and trigger losses spanning multiple policy lines.

Looking Ahead - In the coming year, the retail industry can expect to be impacted by supply chain volatility, increasingly sophisticated organized crime operations, and cybersecurity-related challenges. By staying up to date on these trends and adopting robust risk management practices, retail businesses can position themselves for success in 2026 and beyond.   cbiz.com


Retail Tariff Lawsuits Continue
Costco sued by customer seeking tariff refunds

The proposed class action suit seeks to recoup IEEPA-tariff costs an Illinois customer alleges the retailer passed on to him and other consumers through higher prices.

An Illinois customer filed suit Wednesday against Costco Wholesale seeking to recoup tariff costs he alleges the retailer passed on to him and other consumers through higher prices, before the Supreme Court last month struck down as unlawful the duties imposed by the Trump administration under the International Emergency Economic Powers Act, according to the complaint filed by Matthew Stockov in a federal court.

The proposed class action suit takes issue with Costco’s recently stated commitment to return any potential refunds it receives to its customers through “lower prices and better values,” with the complaint asserting that the company’s commitment is a promise of “possible future benefit to an indeterminate group of future shoppers” and a “hypothetical action” that would not “make the class whole.”

“Costco’s simultaneous recoupment of tariff costs from consumers through elevated pricing and from the government through court-ordered tariff refunds constitutes unjust enrichment at the expense of the classes,” the suit states. “Plaintiffs and the classes are entitled to restitution of the tariff overcharges they paid, or a proportionate share of any tariff refunds Costco recovers, together with interest, reasonable attorneys’ fees and costs.” Costco did not immediately respond to a request for comment about the suit.

Costco is one of a number of companies, including the delivery company FedEx and the maker of Ray-Ban sunglasses Essilor Luxottica, to be hit by lawsuits filed in the wake of the Supreme Court decision by retail customers seeking to recoup the increased tariff-related charges they paid, according to the Associated Press.  retaildive.com

   RELATED: CBP is working on 4-step tariff refund process


The War's Impact on Retail
How the Iran war could start to impact U.S. retail prices

The retail industry could soon be taking the next hit from the Iran war’s disruption to the global supply chain.

Iran’s effective closure of the Strait of Hormuz passage has significantly disrupted the global supply chain, affecting goods from fertilizers to metals to gas and fuel. The passage is a critical point, funneling tens of millions of barrels of oil daily along with other exports as one of the world’s most important shipping routes.

In a Friday statement, logistics provider C.H. Robinson said it’s continuing to monitor updates and urged shippers to plan for continued variability.

“While cargo is moving, carriers are managing constrained capacity, selective acceptance, and fuel‑related cost impacts, resulting in pricing volatility and variable service conditions,” the statement read.

Though it’s still early to determine what the exact impact on retail may be, Coresight Research President Max Kahn said the disruption to the global supply chain may already be pushing the industry near its limits.

“Retailers have become much better at building flexibility in their supply chains, and that got accelerated a lot last year with tariffs,” Kahn told CNBC. “The bigger worry is if this continues to last.” cnbc.com


Workers Ditching the Retail Industry?
Study: Most retail workers considering switching careers or industries
A majority of job seekers, especially those in retail, are looking for a career change.

More than half (54%) of job seekers are interested in switching careers or industries, according to talent success company Criteria’s 2026 Candidate Experience report. Those in blue collar fields are 25% more likely to want to switch careers compared to white collar workers, while those with higher educational attainment are the least likely.

Nearly seven-in-10 (69%) retail candidates are looking to switch careers, the highest percentage of any sector in the study. Retail was followed by those in education (67%), hospitality (65%) and transportation & logistics (63%).

Of those job seekers who say they want to switch careers, nearly half (48%) say they are interested in switching into the tech industry, making it the most popular industry for prospective career switchers. The second most popular industry is healthcare, with 37% expressing interest, followed by 31% for finance.

Candidates are trying hard to find work, according to Criteria’s survey. More than half (52%) of active job seekers say they apply to 1-10 jobs per week, while 27% apply to 10-20 jobs. Ten percent apply to 20-30 jobs, while apply for 30-50 jobs. Six percent of those surveyed apply for over 50 jobs a week. chainstoreage.com


NRF: A unified approach to protecting people, assets and brands
NRF PROTECT 2026 is where enterprise security risk is everyone’s mission

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Last week's #1 article --

Walgreens Deploys Bodycams to Fight 'Rampant Shoplifting'
Walgreens workers will wear bodycams in some NYC stores but shoppers don’t want to be pharma seen
Walgreens will equip employees with body cameras in an apparent first in the city — but “Big Brother” weary New Yorkers say they don’t want to be pharma seen.

The pharmacy store giant — which also owns Duane Reade — kicked off a pilot program it said is aimed at promoting the “safety of both customers and team members.

But shoppers said the Orwellian tech is the latest thing to transform a trip to the corner store into a visit to a “war zone” after years of businesses taking extreme measures to combat rampant shoplifting including locking up even basic merchandise behind plexiglass.

“Body cameras can help de-escalate conflicts, ultimately contributing to a safer environment for everyone,” the company said in a statement. “We understand the importance of protecting customer privacy and have safeguards in place to ensure compliance with all applicable laws and regulations.”

The bodycams are not mandatory, however — employees can decide whether they want to wear the cameras while on the clock. The drugstore has not released any additional information on the pilot program, including how it would use the footage.

Walgreens also hasn’t said which, or how many, of its several dozen Big Apple stores, will be enrolled in the pilot program — leaving its own employees in the dark.

The pilot program comes just months after Gov. Kathy Hochul revealed that retail theft had dropped 13% between January and June of 2025 compared to the same time period the previous year.

Walgreens reported a 52% increase in “shrink” — or loss of inventory — before putting most of its merchandise behind glass, but Tim Wentworth, CEO of Walgreens Boots Alliance, said it was necessary to curb the retail theft he said was akin to a “hand-to-hand combat battle.”  nypost.com