Product availability on shelves remains one of the most pressing challenges for retailers worldwide. Despite years of efforts from manufacturers and retailers, average out-of-stock rates continue to linger around 8-10%. This issue directly impacts sales, customer satisfaction, and brand loyalty.
Recent studies reveal that 70% of customers will shop at a different store after encountering three out-of-stock experiences. This trend not only jeopardizes immediate sales but also the customer’s long-term value. Additionally, product unavailability drives customers to substitute with lower-value items, leading retailers to lose approximately 4% of their annual sales.
This document analyzes the root causes behind availability issues and their impact on various business areas and presents holistic, innovative solutions. Implementing this strategy can result in a 2-3 percentage point improvement in availability, translating directly into sales growth.
Retail leaders can drive their organizations toward a transformation based on real-time data-driven inventory and operational management. This shift will optimize product availability and lay the groundwork for proper omnichannel integration and operational excellence.
