Overview

The retail sourcing and procurement market refers to the processes, technologies, and strategies retailers use to source goods, manage suppliers, and optimize procurement operations. It plays a vital role in ensuring cost efficiency, supply chain transparency, and timely product availability to meet evolving consumer demand. With globalization, retailers are increasingly leveraging digital procurement platforms and advanced analytics to improve supplier collaboration, mitigate risks, and enhance decision-making. The market is expanding due to the rising need for streamlined operations, sustainable sourcing, and effective cost management in a highly competitive retail environment.

The global retail sourcing and procurement market size reached USD 5.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 13.9 Billion by 2033, exhibiting a growth rate (CAGR) of 10.46% during 2025-2033.

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Key Trends

• Digital Transformation in Procurement – Adoption of AI, cloud platforms, and blockchain for real-time tracking, automation, and supplier management.

• Sustainable and Ethical Sourcing – Growing emphasis on sourcing practices that prioritize eco-friendly, ethical, and socially responsible supply chains.

• Data-Driven Insights – Retailers are using advanced analytics to forecast demand, assess supplier performance, and optimize inventory management.

• Supplier Collaboration Platforms – Increasing adoption of integrated procurement systems to improve communication, compliance, and transparency.

• Evolving Consumer Expectations – Pressure on retailers to ensure faster delivery, higher quality, and competitive pricing, driving innovation in procurement processes.

Growth Drivers

• Rising demand for cost-efficient procurement strategies to improve margins.

• Increasing focus on supply chain resilience to manage disruptions and global uncertainties.

• Growing investments in digital procurement solutions for automation and real-time decision-making.

• Expansion of e-commerce and omnichannel retailing, creating higher demand for agile sourcing.

• Government and regulatory push for sustainable procurement practices, boosting adoption of green sourcing methods.

Industry Trends and Drivers:

Increasing Adoption of Digital Platforms:

The accelerating digital transformation in retail is a major driver of the sourcing and procurement market. Retailers are increasingly adopting cloud-based and AI-powered solutions to optimize sourcing, inventory management, and supplier relationships. These platforms deliver advanced analytics that enable smarter decision-making and help mitigate supply chain risks. Real-time visibility into procurement activities supports better demand forecasting and inventory optimization, ultimately lowering costs and improving efficiency. Furthermore, the integration of digital procurement tools with online storefronts is enabling faster, more seamless workflows, further fueling market growth.

Rising Focus on Cost Optimization and Efficiency:

Retailers’ growing emphasis on cost optimization is significantly shaping the market. Procurement solutions that support cost-effective sourcing and efficient supplier management are gaining traction, as they empower retailers to negotiate favorable terms, reduce unnecessary spending, and better control inventory levels. The increasing reliance on analytics-driven insights allows procurement teams to identify inefficiencies and cut waste, driving profitability. In addition, greater focus on reducing procurement-related costs such as transportation, warehousing, and labor, amid tightening margins, is further contributing to industry growth.

Growing Sustainability and Ethical Sourcing Initiatives:

The rising consumer demand for ethically sourced and sustainable products is pushing retailers to adopt responsible procurement practices. Companies face growing pressure to ensure products meet environmental and labor standards, aligning with evolving consumer expectations and regulatory requirements. As a result, sustainability-focused procurement strategies are becoming central, incorporating tools that track supplier practices and product impact. Beyond compliance, these initiatives strengthen brand reputation, foster customer loyalty, and align with broader corporate social responsibility (CSR) objectives. This ongoing shift toward sustainable sourcing is set to remain a key driver of market expansion.

Retail Sourcing and Procurement Market Report Segmentation:

Breakup By Solution:

• Strategic Sourcing
• Supplier Management
• Contract Management
• Procure-to-pay
• Spend Analysis

Based on the solution, the market has been divided into strategic sourcing, supplier management, contract management, procure-to-pay, and spend analysis.

Breakup By Service:

• Implementation
• Consulting
• Training and Support

On the basis of service, the market has been categorized into implementation, consulting, and training and support.

Breakup By Deployment:

• On-premise
• Hybrid
• Cloud

Based on the deployment, the market has been classified into on-premise, hybrid, and cloud.

Breakup By End Use:

• Small and Medium Enterprise (SME)
• Large Enterprise

On the basis of end-use, the market has been divided into small and medium enterprise (SME) and large enterprise.

Breakup By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Region-wise, the market has been segmented into North America (United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and the Middle East and Africa.

Top Retail Sourcing and Procurement Market Leaders:

The retail sourcing and procurement market research report outlines a detailed analysis of the competitive landscape, offering in-depth profiles of major companies.

Some of the key players in the market are:

• Basware Corporation
• Blue Yonder Group Inc. (Panasonic Corp.)
• Epicor Software Corporation
• International Business Machines Corporation
• Infor Inc. (Koch Industries Inc.)
• Ivalua Inc
• Kinaxis
• Oracle Corporation
• Proactis Holdings Plc
• SAP SE
• JAGGAER Inc. and Zycus Inc.

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About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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