How Successful Retailers Prosper in Tough TimesSKIP TO CONTENTHarvard Business Review LogoHarvard Business Review LogoStrategy|How Successful Retailers Prosper in Tough TimesSubscribeSign InLatestMagazineTopicsPodcastsStoreReading ListsData & VisualsCase SelectionsHBR ExecutiveSearch hbr.orgSubscribeLatestPodcastsThe MagazineStoreWebinarsNewslettersAll TopicsReading ListsData & VisualsCase SelectionsHBR ExecutiveMy LibraryAccount SettingsSign InExplore HBRLatestThe MagazinePodcastsStoreWebinarsNewslettersPopular TopicsManaging YourselfLeadershipStrategyManaging TeamsGenderInnovationWork-life BalanceAll TopicsFor SubscribersReading ListsData & VisualsCase SelectionsHBR ExecutiveSubscribeMy AccountMy LibraryTopic FeedsOrdersAccount SettingsEmail PreferencesSign InHarvard Business Review LogoStrategyHow Successful Retailers Prosper in Tough Times by Marshall Fisher and Vishal GaurMarch 26, 2026Steve Proehl/Getty ImagesPostPostShareSavePrintSummary.   Leer en españolLer em portuguêsPostPostShareSavePrintLife has been challenging for U.S. retail chains over the past decade. The Covid-19 pandemic forced widespread store closures, long-standing supply sources became uncertain, and customers’ buying habits changed rapidly, with online retail sales growing from 7.4% of total retail sales in the fourth quarter of 2015 to 16.4% in third quarter of 2025. In the last few years several major retailers declared bankruptcy, including Bargain Hunt, Big Lots, The Container Store, Eddie Bauer, Forever21, Francesca’s, Joann Fabrics, Party City, Rite Aid, and Saks Global.Marshall Fisher is the UPS Professor Emeritus in the Operations, Information, and Decisions Department of the University of Pennsylvania’s Wharton School.Vishal Gaur is the Anne and Elmer Lindseth Dean and a professor of operations, technology, and information management at the Johnson School at Cornell University.PostPostShareSavePrintRead more on Strategy or related topics Operations and supply chain management, Pricing strategy and Retail and consumer goodsPartner CenterStart my subscription!Explore HBRThe LatestAll TopicsMagazine ArchiveReading ListsCase SelectionsHBR ExecutivePodcastsWebinarsData & VisualsMy LibraryNewslettersHBR PressHBR StoreArticle ReprintsBooksCasesCollectionsMagazine IssuesHBR Guide SeriesHBR 20-Minute ManagersHBR Emotional Intelligence SeriesHBR Must ReadsToolsAbout HBRContact UsAdvertise with UsInformation for Booksellers/RetailersMastheadGlobal EditionsMedia InquiriesGuidelines for AuthorsHBR Analytic ServicesCopyright PermissionsAccessibilityDigital AccessibilityManage My AccountMy LibraryTopic FeedsOrdersAccount SettingsEmail PreferencesHelp CenterContact Customer ServiceExplore HBRThe LatestAll TopicsMagazine ArchiveReading ListsCase SelectionsHBR ExecutivePodcastsWebinarsData & VisualsMy LibraryNewslettersHBR PressHBR StoreArticle ReprintsBooksCasesCollectionsMagazine IssuesHBR Guide SeriesHBR 20-Minute ManagersHBR Emotional Intelligence SeriesHBR Must ReadsToolsAbout HBRContact UsAdvertise with UsInformation for Booksellers/RetailersMastheadGlobal EditionsMedia InquiriesGuidelines for AuthorsHBR Analytic ServicesCopyright PermissionsAccessibilityDigital AccessibilityManage My AccountMy LibraryTopic FeedsOrdersAccount SettingsEmail PreferencesHelp CenterContact Customer ServiceFollow HBRFacebookX Corp.LinkedInInstagramYour NewsreaderHarvard Business Review LogoAbout UsCareersPrivacy PolicyCookie PolicyCopyright InformationTrademark PolicyTerms of UseHarvard Business Publishing:Higher EducationCorporate LearningHarvard Business ReviewHarvard Business SchoolCopyright ©2026 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

The retail landscape has undergone a dramatic transformation in recent years, marked by significant challenges and a notable shift in consumer behavior. Marshall Fisher and Vishal Gaur’s analysis, “How Successful Retailers Prosper in Tough Times,” delves into the factors that have enabled certain retailers to navigate this turbulent period, examining both the vulnerabilities exposed and the strategies employed by those adapting most effectively. The article posits that the recent difficulties experienced by numerous U.S. retail chains – including prominent names like Bargain Hunt, Big Lots, and Saks Global – are not isolated incidents but rather symptomatic of deeper, systemic issues within the industry. These closures and bankruptcies were exacerbated by a confluence of disruptive forces beginning around 2015, most notably the rapid acceleration of online retail sales, which surged from 7.4% of total retail sales to 16.4% by the third quarter of 2025. This significant shift forced established brick-and-mortar retailers to confront a drastically altered consumer landscape.

Central to Fisher and Gaur’s argument is the recognition that retailers’ responses to these pressures have varied considerably in effectiveness. The article identifies several key characteristics of thriving retailers, primarily revolving around adaptability, operational efficiency, and a keen understanding of evolving customer needs. A crucial element in their success is a demonstrated capacity for rapid response, characterized by swift decision-making and the willingness to experiment with new strategies. This responsiveness extended beyond simply acknowledging changes in consumer preferences; it involved proactive investment in technology, supply chain optimization, and, critically, the development of integrated omnichannel strategies.

The supply chain instability amplified by the Covid-19 pandemic further highlighted the importance of robust logistics and diversified sourcing. Retailers who had previously relied on concentrated supply networks were particularly vulnerable. Those who had invested in building more resilient supply chains—with multiple suppliers, advanced inventory management systems, and a greater reliance on domestic production—were better positioned to withstand disruptions and maintain product availability. Furthermore, these successful retailers prioritized data analytics, deploying these capabilities to gain deeper insights into consumer behavior, forecast demand accurately, and personalize the customer experience. This data-driven approach enabled them to make informed decisions regarding inventory levels, pricing strategies, and marketing campaigns.

Pricing strategy played a critical role. Retailers that effectively leveraged dynamic pricing – adjusting prices in real-time based on demand, competition, and inventory levels – were able to maintain profitability amidst fluctuating costs and increased price transparency driven by online marketplaces. Moreover, the ability to offer value to the consumer, through promotions, loyalty programs, and a strong brand narrative, proved to be a persistent differentiator. Those brands with deeply ingrained customer relationships, like Party City before the pandemic, found themselves particularly vulnerable as consumers shifted their spending habits.

The authors’ analysis reveals a recurring theme: the most successful retailers are not simply reacting to industry trends; they are actively shaping them. Their ability to integrate digital and physical channels, refine their supply chains, harness data insights, and prioritize customer engagement proved decisive in navigating the challenging economic climate. Ultimately, Fisher and Gaur’s work underscores that thriving in tough times requires a commitment to agility, innovation, and a sustained focus on what truly matters—meeting the diverse and evolving needs of the modern consumer.