Retail Sourcing and Procurement Market – Global Industry Size, Share, Trends, Opportunity, and Forecast By Component (Service (Implementation, Training & Support, Consulting), Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis), By Deployment Type (On-Premises, Cloud), By Organization Size (SMEs, Large Enterprises)), By End User (Retailers, Food & Beverage, Wholesalers & Distributors, Home Improvement & DIY Retailers, Others), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.73 Billion
CAGR (2026-2031)	15.09%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 15.64 Billion

Market Overview

The Global Retail Sourcing and Procurement Market will grow from USD 6.73 Billion in 2025 to USD 15.64 Billion by 2031 at a 15.09% CAGR. Retail sourcing and procurement encompasses the strategic methodologies and digital platforms used by retailers to identify suppliers, negotiate contracts, and acquire goods for resale or operational use. The market is primarily propelled by the critical need for cost optimization and the intensifying demand for supply chain transparency to ensure ethical compliance and risk mitigation. These drivers compel organizations to adopt advanced procurement frameworks that enhance inventory visibility and streamline supplier collaboration, ensuring long-term resilience rather than merely adopting transient technological trends.

However, a significant challenge impeding market expansion is the acute shortage of skilled professionals capable of navigating these increasingly complex procurement ecosystems. This talent deficit limits the ability of retail organizations to fully leverage sophisticated sourcing tools, thereby slowing the adoption rate of new solutions. According to the Chartered Institute of Procurement & Supply, in 2024, 58% of employers reported difficulties in recruiting suitable talent to fulfill their procurement requirements. Consequently, this skills gap threatens to bottleneck the modernization efforts essential for the market's continued growth.

Key Market Drivers

The integration of artificial intelligence and predictive analytics is a primary force reshaping the Global Retail Sourcing and Procurement Market. Retailers are increasingly deploying these technologies to enhance demand forecasting accuracy, automate routine purchasing tasks, and optimize inventory levels against volatile market conditions. This strategic shift is driven by the necessity to improve operational agility and data utilization. According to Honeywell, January 2025, in the 'AI in Retail Survey', more than 80% of retailers plan to increase the use of automation and artificial intelligence across their operations to adapt to changing consumer behaviors. This aligns with the broader industry trend towards modernization; according to SAP, January 2025, in the 'Digital transformation and AI adoption in procurement' report, 57% of executives cited digitalization as the leading strategic priority for procurement functions in the coming year.

Concurrently, the imperative for sustainable and ethical sourcing practices is fundamentally altering procurement frameworks. Organizations are under pressure from regulators and consumers to ensure supply chain transparency and reduce their carbon footprint. This driver compels retailers to implement rigorous supplier vetting and traceability systems to monitor environmental compliance. According to the British Retail Consortium, December 2025, in the 'Climate Action Roadmap' update, 91% of retailers have established a greenhouse gas emissions baseline to publicly report and track their environmental impact. By embedding these sustainability metrics into sourcing strategies, companies are mitigating reputational risk and securing long-term resilience in a resource-constrained global economy.

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Key Market Challenges

The shortage of skilled professionals constitutes a formidable barrier to the growth of the Global Retail Sourcing and Procurement Market. As procurement functions evolve from transactional buying to strategic, data-driven operations, the requirement for personnel proficient in digital tools, risk management, and complex negotiation has surged. However, the available talent pool has not kept pace with this rapid transformation. This scarcity forces organizations to delay the deployment of advanced digital platforms and automated sourcing frameworks because they lack the human capital required to manage these systems effectively. Consequently, the operational efficiency and supply chain transparency that these tools promise remain unrealized, preventing retailers from fully capitalizing on market opportunities.

The magnitude of this issue is evident in recent industry findings which highlight the severity of the labor deficit across the supply chain ecosystem. According to the MHI Annual Industry Report, in 2025, 83% of supply chain and manufacturing professionals identified the ongoing workforce and talent shortage as a significant challenge for their operations. This high prevalence of talent deficits means that retail organizations are frequently preoccupied with filling basic operational roles rather than optimizing their procurement strategies. Without a robust pipeline of skilled procurement specialists, retailers struggle to navigate volatile markets or ensure ethical compliance, thereby decelerating the overall growth trajectory of the global sourcing market.

Key Market Trends

The Expansion of Nearshoring Strategies to Mitigate Global Supply Risks is fundamentally restructuring retail supply networks as companies retreat from distant, single-source dependencies. Retailers are increasingly regionalizing their manufacturing and sourcing footprints to insulate operations against geopolitical volatility and trade tariff fluctuations. This structural shift prioritizes proximity and agility over the lowest possible unit cost, allowing organizations to respond more rapidly to demand surges while reducing transit times. According to WSI, December 2025, in the 'Retail Supply Chain Moves That Will Define 2026' report, 77% of supply chain leaders have already shifted sourcing away from China toward tariff-neutral countries to mitigate risk. This widespread relocation underscores a permanent pivot toward shorter, more resilient supply lines that can better withstand global disruptions.

The Utilization of IoT Devices for End-to-End Inventory Visibility is gaining traction as retailers deploy physical tracking hardware to eliminate data blind spots across the value chain. By embedding radio-frequency identification (RFID) sensors and connected shelf-monitoring systems, procurement leaders are generating the granular, real-time data necessary to validate stock levels and prevent costly inventory distortion. This hardware-driven transparency validates shipment accuracy and minimizes shrinkage, providing the foundational data layer required for higher-level automated decision-making. According to Zebra Technologies, November 2025, in the '18th Annual Global Shopper Study', 54% of retail decision-makers plan to implement RFID technology over the next five years to improve inventory visibility and reduce shrinkage. These investments are critical for closing the gap between digital inventory records and physical stock availability.

Segmental Insights

The Cloud segment represents the fastest-growing deployment category within the Global Retail Sourcing and Procurement Market, driven by a widespread industry shift toward cost-efficient and scalable digital infrastructure. Retailers are increasingly adopting cloud-based solutions to replace rigid on-premise systems, thereby reducing upfront capital investments and maintenance burdens. These platforms provide the critical agility needed to manage geographically dispersed supply chains, ensuring real-time data accessibility and enhanced collaboration among global stakeholders. This operational flexibility allows companies to adapt swiftly to fluctuating inventory needs and dynamic consumer demands, solidifying the cloud's position as a vital component of modern retail procurement strategies.

Regional Insights

North America maintains a dominant position in the global retail sourcing and procurement market, driven by the rapid adoption of digital supply chain technologies. Retailers in the United States and Canada prioritize centralized procurement strategies to enhance operational efficiency and manage vendor risks effectively. The region benefits from a high concentration of major retail enterprises that invest heavily in automation and cloud-based analytics to optimize inventory levels. Additionally, the need to navigate complex global trade networks encourages organizations to implement consistent sourcing frameworks, further solidifying the regional market leadership.

Recent Developments

• In September 2024, Bamboo Rose acquired Foresight Retail, a move that significantly enhanced its retail management platform with advanced planning capabilities and bidirectional data flow. This strategic acquisition allowed the company to integrate planning and product lifecycle management, enabling brands to make data-driven product choices with real-time insights. The integration provided retailers with the ability to unify planning and development processes, thereby boosting efficiency and enabling smarter decision-making. This expansion was described as a cornerstone of the company's growth strategy, aiming to help brands deliver better products to market faster and with greater precision.
• In June 2024, TradeBeyond announced a strategic collaboration with Walgreens Boots Alliance Global Sourcing to optimize and standardize the company's operations across its retail brands. The retail pharmacy giant selected the multi-enterprise platform to replace legacy systems and leverage more innovative sourcing practices. This deployment aimed to manage numerous processes within the global sourcing function, including order management follow-up and overall sourcing activities. By adopting this technology, the retailer sought to create digital efficiencies, unify processes, and facilitate greater data transparency and integrity throughout its extensive global supply chain network.
• In March 2024, Oracle introduced new logistics capabilities within its Fusion Cloud Supply Chain & Manufacturing suite to enhance global supply chain efficiency for retailers and other industries. These updates were designed to help organizations optimize logistics operations by increasing visibility, reducing costs, and automating regulatory compliance. The new features included expanded business intelligence capabilities that integrated transportation and trade data with other operational metrics to improve decision-making. Additionally, enhanced logistics network modeling allowed managers to simulate various scenarios and scheduling options. These innovations aimed to assist businesses in navigating complex global trade environments and improving service levels.
• In March 2024, Coupa Software launched a series of AI-driven innovations aimed at improving the buying experience and collaboration across the supply chain. These new features focused on increasing payments automation by extracting invoice data from scanned documents and automatically assigning tax codes, thereby reducing manual entry. The update also optimized workflow processes by auto-assigning purchase and supplier requests to users based on customized settings. Furthermore, the company introduced forecast collaboration tools to streamline communication between buyers and suppliers, helping businesses better match supply and demand while mitigating risks in the procurement process.

Key Market Players

• SAP SE
• Oracle Corporation
• IBM Corporation
• GEP
• Ivalua Inc.
• Jaggaer
• Epicor Software Corporation
• Coupa Software Inc.
• Zycus Inc.
• Infor Inc.

By Component	By Deployment Type	By Organization Size	By End User	By Region
Service (Implementation, Training & Support, Consulting) Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis)	On-Premises Cloud	SMEs Large Enterprises	Retailers Food & Beverage Wholesalers & Distributors Home Improvement & DIY Retailers Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Retail Sourcing and Procurement Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Retail Sourcing and Procurement Market, By Component:

• Service (Implementation, Training & Support, Consulting)
• Solution (Strategic Sourcing, Supplier Management, Contract Management, Procure-to-Pay, Spend Analysis)

• Retail Sourcing and Procurement Market, By Deployment Type:

• On-Premises
• Cloud

• Retail Sourcing and Procurement Market, By Organization Size:

• SMEs
• Large Enterprises

• Retail Sourcing and Procurement Market, By End User:

• Retailers
• Food & Beverage
• Wholesalers & Distributors
• Home Improvement & DIY Retailers
• Others

• Retail Sourcing and Procurement Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE