73% are experiencing more out-of-stocks since the start of the cost-of-living crisis;
66% say their favorite brands are less frequently available on shelves;
30% would question their loyalty to a retailer if out-of-stocks became a regular occurrence;
48% blame the growing cost of food production on poor inventory levels
CHICAGO, Sept. 14, 2023 – As retailers face continued supply chain disruption – from the long shadow of COVID-19 to worker shortages and climate change – shoppers are reporting increased levels of out-of-stock products, according to the latest data from Retail Insight, the leading provider of store operations execution software.
Original research of over 1,000 U.S. shoppers by Retail Insight revealed that 78% have experienced out-of-stock products in store in the past 12 months, up 6% year-over-year, while 68% have experienced the same issue online, an increase of 9% since 2022.
Three in four shoppers (75%) say product availability has become more of a problem since the pandemic, and nearly three quarters of shoppers (73%) now experience more out-of-stocks since the start of the cost-of-living crisis. Two-thirds (66%) of customers reported that their favorite brands have been less available in-store across the last year, while 51% had noticed more items are missing from their online grocery orders.
With retailers still reporting pandemic-related disruption to supply chains, supermarkets have also come under pressure from climate challenges and macroeconomic forces. From an avian flu outbreak hitting poultry farmers and prompting egg shortages to chronic labor shortages, retailers have faced a myriad of supply chain and operational challenges.
While macroeconomic factors impacting product availability hit the headlines, U.S. shoppers polled by Retail Insight blamed poor product availability on the cost-of-living, with 48% citing the growing cost of food production and a further 54% pointing to inflation as the biggest factors impacting stock levels. Meanwhile, 34% said the increased costs of logistics were liable for the problem of rising out-of-stocks, and a further 30% blamed a lack of store staff to stock shelves.
“Regardless of the causes – of which there are many and, rather unjustly, 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,” said Paul Boyle, CEO, Retail Insight. “It can cost retailers lost sales and, even more detrimentally, long-term loyalty.”
Three in ten (30%) U.S. consumers would question their loyalty to a grocer if out-of-stocks became a regular occurrence, and a further 24% would abandon their shopping missions and leave the store without buying other items in their baskets if they experienced a gap on shelves.
“While the figure varies 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 said. “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 leave on the table. 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.”
Retail Insight’s AvailabilityInsight solution takes retailers’ data and, powered by cognitive technology, quickly turns it into actionable alerts that show where, when and why items are not available. This enables grocers to make smarter decisions, minimize out-of-stocks and grow customer satisfaction to boost sales and loyalty.
About Retail Insight
Retail Insight leverages advanced analytics to optimize in-store operations for retailers and CPGs. Our cloud-based solutions are powered by a unique blend of retail expertise, pragmatic mathematics, and intelligent technology that free up associates to serve and sell, enabling them to run the perfect store.
Media Contact
Abby Nelson
Ketner Group Communications (for Retail Insight)