Nov. 25, 2022
Retailers Must Address Stockouts To Maintain Customer Loyalty
Across sectors such as home décor, electronics, and home improvement, the percentage of consumers with decreasing trust that retailers will have what they want now ranges from 28 to 36 per cent, says the ‘How Retailers Win Customer Loyalty in an Omnichannel World’ study from ToolsGroup and IHL Group. In fact, when shoppers are in-store and facing stockouts, 21 per cent will leave and buy from a competitor’s store. The study also says that as a result of eCommerce and omnichannel shopping, impulse buying has declined. This is a critical issue for retailers as up to 22 per cent of the consumer's total bill when shopping in physical stores comes from impulse items. The good news is retailers can counter losses due to inventory distortion (the combined cost of lost sales from out-of-stocks and deep discounting) by improving their stock position. To do this, they can implement AI-supported retail planning software such as demand forecasting, inventory optimization, real-time inventory visibility, and order fulfillment optimization to create a healthy inventory balance.