GLOBAL SOURCING, CYBERSECURITY VULNERABILITIES, AND U.S. RETAIL MARKET OUTCOMES: A REVIEW OF PRICING IMPACTS AND CONSUMER TRENDS

Abstract

This quantitative review synthesizes evidence on how global sourcing and emerging cybersecurity vulnerabilities jointly influence U.S. retail pricing structures and consumer market outcomes. Drawing on 64 empirical studies published between 1990 and 2020, the analysis harmonizes sourcing-intensity measures across retail categories and integrates documented cyber-risk exposures within internationally distributed supply chains. The pooled data reveal substantial variation in sourcing reliance, with mean import shares of 72% in apparel and footwear, 70% in toys, 64% in consumer electronics, 55% in general merchandise, 42% in home goods, and 28% in grocery tradables. Higher sourcing intensity consistently aligned with nominal price declines in tradable goods, including average posted-price reductions of −4.8% in apparel, −4.1% in toys, and −3.5% in electronics, while grocery tradables experienced a modest −0.8% decrease. Transaction-price effects were even larger, reaching −6.2% in apparel and −5.4% in toys, indicating strong promotional pass-through. Correlational analyses confirmed these patterns: sourcing intensity was negatively associated with posted prices (r = −0.62) and price-change magnitudes (r = −0.58), and positively associated with imported-variety expansion (r = 0.66) and quality-adjusted affordability (r = 0.49). Random-effects meta-regressions further demonstrated significant price-reducing effects of sourcing intensity on both posted (β = −0.032, p < .001) and transaction prices (β = −0.041, p < .001). Exchange-rate cost shocks generated additional price decreases (β = −0.021), whereas tariff shocks produced modest increases (β = 0.012). Cybersecurity vulnerabilities—particularly data breaches, ransomware interruptions, and compromised vendor systems—emerged as a moderating factor, amplifying cost variability and temporarily disrupting price pass-through in categories with high digital supply-chain integration. Despite these risks, non-price outcomes remained substantial: sourcing intensity predicted imported-variety growth (β = 0.058) and stronger substitution patterns (β = 0.026). Overall, the evidence shows that global sourcing lowers U.S. retail prices and expands variety, while cybersecurity exposures introduce new uncertainties that increasingly shape consumer markets in the digital sourcing era.