Seventy-five percent of all U.S. adults have found the product they wanted was unavailable in-store in the last 12 months, according to a recent poll conducted by YouGov. Alhough a tad bit better, the out-of-stock notice occurred for 63 percent of shoppers online in the same time period.
The results of the survey show the strain that omnichannel shopping has created on fulfillment, resulting in unprecedented levels of out-of-stock inventory. This lack of product can have a big impact on how the consumer views a brand. According to a recent research from the IHL Group, retailers are losing $1.75 trillion annually due to the cost of out-of-stock products, along with overstocks and needless returns.
More specifically, 38 percent of U.S. shoppers found a desired product to be out of stock in a store "often" or "very often" in the last year, and 26 percent had the same experience online in the past year.
For retailers, 58 percent of these disappointed shoppers turned into lost sales because the customer bought from another retailer or not at all. Even more online sales were lost, 65 percent, due to disappointed shoppers who discovered products were out of stock.
|View full GT Nexus infographic here.|
"Consumers continue to be disappointed by retailers' inability to meet demand, both online and in-store," said Bryan Nella, director of corporate communications at GT Nexus. "While retailers continue to invest in the front-end of business—the customer facing websites and in-store promotions, for example—they are lagging in their ability to execute the movement of goods.
"The ability to sense and respond to demand through greater inventory visibility and intelligence is critical for retailers, especially now as back-to-school shopping reaches its peak."
A few months back, Target (NYSE:TGT) created quite a buzz when its spring Lilly Pulitzer collection was out of stock less than 24 hours after its launch. The popular 250-item, limited-edition collection caused the website to go down for 20 minutes, created lines outside of physical stores, and resulted in frustrated customers who used social media to broadcast their unhappiness.
-See this GT Nexus website
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