How Store Development Leaders Are Navigating Tariffs, AI, and Smarter Design

"I'm not just gonna write a bigger check. I'm actually gonna buy less," said Steve Lamontagne, VP of Portfolio Optimization at Sprouts, on dealing with tariffs. At RetailSpaces, Lamontagne joined April Miller Duncan, VP of Design & Construction at Discount Tire, and Wayne Schuster, VP of Store Development at Total Wine & More, for a panel that ditched the theory and delivered real-world solutions. Moderated by Blake Brosa of Apex Imaging Services, the conversation revealed how these retailers are tackling today's toughest challenges head-on.

Tackling Tariffs Head-On

With recent tariff increases hitting steel and aluminum hard, Duncan didn't sugarcoat the situation: "We're not gonna change the tariffs. We can't do anything about that." Instead, she revealed a three-pronged approach to offset these mounting costs:

1. Strategic Bulk Buying: "We are trying to bulk buy more," Duncan explained, noting this approach requires careful forecasting and cash flow management.
   
   
2. Bundle Projects Geographically: "We like to bundle. If we've got five or six stores coming in North Carolina, or two in North Carolina and three in South Carolina, we'll create a bundle." This consolidated approach leads to economies of scale that help offset tariff-driven cost increases.
   
   
3. Rethinking Vendor Relationships: Perhaps most importantly, Duncan emphasized moving beyond transactional relationships to create mutually beneficial partnerships that can weather pricing pressures. "We expect good customer service and good deliverables, and we'll keep feeding you and your families and your employees."

Steve Lamontagne of Sprouts shared a more direct response to tariff increases: "I'm not just gonna write a bigger check. I'm actually gonna buy less. Take whatever my PO is, take the tariff off... and I'm gonna buy less, which means I'm gonna execute less on behalf of the consumer." This approach forces an organization-wide conversation about priorities when facing unavoidable cost increases.

Smaller Stores, Smarter Designs

Sprouts has already downsized from 30,000 to 23,000 square feet, primarily to increase speed to market. However, Lamontagne won't compromise on layout integrity: "We'll reject a site if it's got some angle corner in the back" that disrupts customer flow.

For Total Wine, the challenge lies in preserving experiential elements like tasting bars and education rooms in tighter spaces, while also adapting to the digital shift. "We're seeing more in-store pickup and curbside," Schuster explained, requiring a fundamental rethinking of store layout and register counts.

AI Applications That Actually Work

Duncan revealed that Discount Tire is already leveraging AI with architectural partners to visualize new concepts: "We're really seeing how we can get to the square footage that we were just talking about. How does that look? How do we explain that to our executive committee? How do we understand what that model will produce for us?"

Sprouts is applying machine learning to facilities management, creating a data-driven approach to store reinvestment. "For the first time, we actually know by store the age of every single piece of equipment and understand their useful life," Lamontagne explained. This allows them to be proactive rather than reactive with maintenance—a critical shift for a maturing retail chain.

Partnerships, Not Vendorships

“We’re not looking for a vendorship—we’re looking for a partnership,” Duncan put it simply. It’s a mindset shift that’s changing how leading retailers work with solution providers. This isn’t about a one-off PO or a quick win. It’s about building something together—over 5, 10, even 15 years. “How are you going to help us grow? Because that’s how you grow, too.”

And this isn’t just talk. Lamontagne’s team backs it up with quarterly business reviews that flip the usual script. "I'll go to our strategic partners and say, 'Tell me where I'm doing stupid.' I don't have all the answers. My team doesn't have all the answers."

What's Actually Working Right Now

Behind the strategic talk, the panel revealed specific innovations delivering results today:

• Total Wine's redesigned aisle guides moved from in-aisle (where they were constantly damaged) to the front of aisles, with flexible rather than permanent numbering—saving ongoing maintenance costs while improving navigation.
  
  
• Sprouts' in-store "Shark Tank" gives new products a 90-day trial before either advancing to store shelves or getting eliminated, keeping their offering fresh without disrupting core operations.
  
  
• Discount Tire's "building the dream" design philosophy creates stores specifically to enable employee financial advancement—turning store manager roles into transformative career opportunities.

Tariffs, tight timelines, AI, rising expectations… none of it’s getting easier. But this panel made it clear: success doesn’t come from chasing perfection. It comes from building systems that can flex, teams that can adapt, and partnerships built to last.

Retail is evolving. These leaders are pushing it forward with sharper thinking and smarter moves.

And honestly? That’s the energy we’re here for.

Watch the full discussion below 👇