Stockout

[1] According to a study by researchers Thomas Gruen and Daniel Corsten, the global average level of out-of-stocks within retail fast-moving consumer goods sector across developed economies was 8.3% in 2008.

[2] This means that shoppers would have a 42% chance of fulfilling a ten-item shopping list without encountering a stockout.

[5] This broad knowledge offers retailers the opportunity to improve on-shelf availability through internal measures.

Understanding how consumers respond to stockouts is therefore the starting point for retailers who wish to improve on-shelf availability.

Consumer behavior theory argues that trial precedes adoption, and, thus, an out-of-stock sets the stage for possible permanent store switching.

[4] Research findings show that a typical retailer loses about 4 percent of sales due to having items out-of-stock.

Due to differing sales velocities and replenishment schedules, the effectiveness of manual stockout audits depends heavily on their frequency and timing, and on avoiding human counting errors.

[14] Finally, various types of technology, such as RFID, shelf stoppers and weight or light sensors, can be used.