The new geography of ecommerce: Top distribution locations retailers are betting on for 2026

"In 2025, retail brands faced rising customer expectations, ongoing tariff challenges, geopolitical instability, and omnichannel complexity. These challenges sparked new conversations and a closer look at global supply chains. A recent WSI | Kase survey found that 94% of retail supply chain leaders agree that recent tariff increases have accelerated supply chain decision-making, illustrating the pressure to implement agile adjustments, including geographical changes."

"Brands making distribution and fulfillment changes in 2026 must shift away from the concept of "one big warehouse," and instead move toward flexible and resilient networks that embrace multiple nodes, micro-fulfillment, and in the longer term, possible nearshoring or reshoring. Put simply, location matters more than ever. In fact, 89% of retail supply chain leaders believe that proximity builds brand equity, enhancing trust and customer experiences."

"Location directly impacts revenue and long-term resilience as well, making location strategy a board-level decision. Where a brand's inventory sits determines delivery speed, shipping expense, service consistency, and how quickly a brand can respond to demand shifts or disruptions. That means network decisions influence growth, risk exposure, and competitive advantage, making fulfillment location a strategic choice."

Retail supply chains face increased customer expectations, tariff pressures, geopolitical instability, and omnichannel complexity that accelerate decision-making and force geographic adjustments. Distribution strategies should move away from single large warehouses toward flexible, resilient networks with multiple nodes, micro-fulfillment, and potential nearshoring or reshoring. Proximity to customers builds brand equity, trust, and better experiences, and location choices directly affect delivery speed, shipping costs, service consistency, and responsiveness to demand shifts or disruptions. Network location decisions therefore shape revenue, growth potential, risk exposure, and competitive advantage, elevating fulfillment location to a board-level strategic priority.

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