Original research of over 1,000 US shoppers and over 1,000 UK shoppers by Retail Insight in 2023, revealed that 78% of US shoppers and 82% of UK shoppers have experienced out-of-stock products in store.
While 60% of UK shoppers have experienced the same issue online, an increase of +6% since 2022, compared to 68% of US shoppers have experienced the same issue online, an increase of +9% since 2022.
Two-thirds (66%) of US shoppers and 60% of UK shoppers reported that their favorite brands have been less available in-store across the last year.
While macroeconomic factors impacting product availability hit the headlines, both the UK and US shoppers polled by Retail Insight cited the growing cost of food production (57% UK, 48% US), and a further 56% of UK shoppers and 54% of US shoppers pointing to inflation as the biggest factors impacting stock levels.
Paul Boyle, CEO of Retail Insight, commented: “Regardless of the causes – of which there are many and, rather unfortunately, a great number of which remain outside of a retailer’s direct control – poor product availability doesn’t just impact customer experience at the shelf edge. It can cost retailers sales and, worse, long-term loyalty.”
Over a quarter (27%) of UK consumers and three in ten (30%) U.S. consumers would question their loyalty to a grocer if out-of-stocks became a regular occurrence.
“From grocer to grocer and from category to category, the accuracy of availability of product on the shelf can vary significantly, with inventory records usually only 50-60% accurate,” Boyle continued. “When items are unavailable, hidden, or damaged, the resulting lost sales can be as much as 8% of revenue – an opportunity retailers can ill-afford to lose. By leveraging 'live' data, retailers can build a more accurate picture to ensure better product availability, putting the right product on the right shelf at the right time to keep their customers happy and encourage shopper loyalty.”
Thus, retailers need an automated way to monitor and reduce out-of-stocks and eliminate the labor-intensive gap scans. Freeing up their associates to serve and sell to their customers.
Retail Insight’s cognitive technology, the augmentation of human subject-matter expertise with advanced mathematical techniques enables retailers to take a more pragmatic and impactful approach to decision-making.
It empowers retailers to optimize their retail operations to sell more, improve productivity, and boost profitability across their entire estate.
Find out more about Retail Insight’s cognitive technology here.