Retail supply chains in 2026: Smarter, faster and more disciplined operations drive competitive advantage

Margins in South Africa’s retail sector have always been hard-won, but the pressure is intensifying. Rising input costs, persistent energy constraints, volatile fuel prices and a consumer base that is both price-sensitive and increasingly impatient have combined to expose inefficiencies that retailers can no longer afford to absorb.

What once passed as ‘good enough’ in logistics, replenishment and inventory planning is now a direct threat to competitiveness. At the same time, consumer behaviour is evolving at a pace that traditional operating models struggle to match. Shoppers expect consistent availability across physical stores and digital channels, faster turnaround times and clearer value – all without paying more. Promotions, seasonal demand and regional buying patterns are shifting faster, leaving retailers with shrinking margins for error and little tolerance for excess stock, waste or delayed response.

Against this backdrop, 2026 is shaping up as a pivotal year for retail operations. “Retailers are becoming far more disciplined about where and how they deploy capital,” says Bremer Pauw, Chief Commercial Officer – Middle East & Africa and Managing Director for Africa at DHL Supply Chain. “We’re seeing a move toward flexible, asset-light models that allow businesses to scale up or down without carrying unnecessary fixed cost. At the same time, there’s a sharper focus on cost-to-serve and profitable growth.

The question is no longer ‘How fast can we grow?’ but ‘How smart can we grow?’” This emphasis on smarter, more selective investment is also reshaping how retailers approach logistics and automation projects on the ground. According to Corrie Janse van Rensburg, Managing Director at KNAPP Logistics South Africa, one size simply does not fit all. “It is a motto that has shaped KNAPP. This approach is strongly linked to our strategic direction and to shifting consumer behaviour.

Covering all channels – from e-commerce and store delivery to omnichannel, micro-fulfilment and traditional distribution – is increasingly important.” As a result, projects today vary significantly in size and in how deeply they extend across the value chain. Many partnerships begin with a single measurement device or software solution in a manual warehouse, before scaling over time into larger, more automated distribution centre environments. That flexibility is becoming increasingly important as retailers reassess the role of physical stores within their broader networks.

According to Dr Eric Mogire, Postdoctoral Research Fellow at the Institute of Transport and Logistics Studies (Africa) at the University of Johannesburg, many retailers are actively reducing their physical store footprints while expanding their reach through e-commerce platforms. At the same time, omnichannel retail models, including click-and-collect and curbside pick-up, extend convenience and capture demand across multiple touchpoints, rather than relying solely on traditional in-store traffic. As the lines between physical and digital retail continue to blur, availability and speed are emerging as critical differentiators.

Willem van Wyk of Forte Supply Chain Solutions says Van Wyk adds that click-and-collect is set to grow further as customers increasingly prefer to collect purchases at a time and location that suits them, rather than waiting for home delivery. This shift places added pressure on retailers to synchronise inventory, fulfilment and transport more precisely – reinforcing the need for agile, highly visible supply chains that can support multiple channels – without adding cost or complexity.

Technology priorities: AI, automation and real-time decision-making

While investment discipline and operational f lexibility are shaping how retailers plan for the year ahead, technology is increasingly defining how those plans are executed. Importantly, 2026 is not expected to usher in a wave of entirely new tools, but rather a more selective and purposeful deployment of technologies that simplify complexity, sharpen decision-making and improve responsiveness across increasingly fragmented retail networks. According to Pauw, the focus is shifting away from technology accumulation towards practical value.

He says that emphasis on clarity is becoming central to retail strategy. Pauw emphasises that the real value lies in knowing what is happening across demand, inventory and execution and being able to respond without delay. In an environment where consumer demand can shift rapidly and supply chains remain exposed to global volatility, the ability to respond without delay is fast becoming a competitive differentiator.

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