|
- Availability Background
- Shopper Frustrations
- Response to out of stocks
Availability shortcomings in the last 50 yards
Research by ECR Europe has found that when availability is measured along the supply chain it deteriorates closer to the shopper. Despite a service level of 99% from the supplier to the retailer’s distribution centre it is often down to as low as 90% by the time it goes from the stock room to the in-store fixture. This highlights the importance of ‘availability in the last 50 yards’
Out of stocks - Shopper frustrations
There is an expectation from shoppers in IGD's Shelf Ready Packaging: The Shopper View report that they will be able to get everything they require in one shopping trip and when this is not the case negative attitudes towards the store can result. As shoppers’ expectations increase and time to shop decreases the frustration with out of stocks can become greater.
In our survey conducted across GB, France, Germany and Spain it was found that out of stocks are particularly frustrating to French and British shoppers. Spanish shoppers were the least likely to be frustrated by out of stocks.
The product(s) I want is/are out of stock
Source: IGD Consumer Research, 2006
Response to out of stocks
A shopper who finds a specific product unavailable may react in a number of different ways. Five primary responses have been identified:
- Buy the items at another store
- Delay purchase
- Substitute - same brand (different size or type e.g flavour or format)
- Substitute - different brand
- Do not purchase the item
Whichever action the shopper chooses to take, the retailer, manufacturer or both will face losses. However the extent of the loss faced is largely dependent on the action chosen by the shopper.
Buying at another store
The most common shopper response when their intended purchase is unavailable is to buy the item at another store. In Germany and France, half of shoppers will buy the product from another store while 37% of GB shoppers will shop elsewhere.
Buying a different brand
The next response in our research is more relevant to suppliers with over one in four shoppers in Spain, GB and France stating that they will buy a different brand. 18% of German shoppers will respond in this way suggesting brand loyalty amongst Germans is stronger than store loyalty.
Delaying purchase
Of concern to both retailers and suppliers are the shoppers who are willing to delay or forfeit their purchase altogether. In GB, 17% of shoppers will wait until they next go shopping and 10% will not buy at all. That is over one quarter (27%) of shoppers who will not buy that product or a substitute on that shopping trip. Almost one quarter of German shoppers will also respond to out of stocks by not making a purchase during the shopping trip while slightly less than one fifth of shoppers in France (19%) and Spain (18%) will respond in this way.
Reaction to out of stocks
Source: IGD Consumer Research, 2006
Factors which will determine the response taken will include how essential the product is for the shopper and how brand loyal they are.
|
