Retail Insight’s original research of over 1,000 UK shoppers reveals concerning figures on product availability. In-store, 82% of UK shoppers have encountered out-of-stock products in the past year, marking an increase of 11 percentage points compared to the previous year. Similarly, online shoppers experienced the same issue, with 60% reporting encountering out-of-stock products, a 6% increase since 2022.
The impact of the ongoing pandemic exacerbates the problem, with 71% of shoppers noting that product availability has become more of a challenge. The cost-of-living crisis has further impacted availability, as three quarters of shoppers (75%) now experience more out-of-stock items since the onset of this crisis.
Furthermore, favorite brands have become less available in-store for 60% of customers in the last year. Online grocery orders have also suffered, with 45% of consumers noticing missing items from their orders.
These stock shortages are not solely caused by the pandemic or macroeconomic factors. Retail Insight’s survey discovered that UK shoppers attributed the poor product availability primarily to the rising cost of food production, with 57% identifying it as a significant factor. Inflation was also named by 56% of respondents as affecting stock levels. Additionally, 43% highlighted increased logistic costs, while 40% attributed the issue to Brexit.
Paul Boyle, CEO of Retail Insight, emphasized that poor product availability impacts not only customer experience but also retailers’ overall sales and long-term loyalty. Any out-of-stock occurrences may lead to 27% of UK consumers reconsidering their loyalty to a grocer. Moreover, 21% of shoppers would abandon their shopping mission if they encountered an empty shelf, consequently leaving the store without purchasing additional items. To make matters worse, 27% would switch their allegiance to a competitor supermarket.
Boyle further disclosed that inventory records typically maintain an accuracy rate of only 50-60%. The consequential lost sales from unavailable, hidden, or damaged items could amount to 8% of retailers’ revenue, an opportunity they can ill-afford to neglect.
In summary, Retail Insight’s research highlights the pressing issue of product availability across UK retailers. Not only is this a matter of customer satisfaction, but it also impacts a retailer’s sales performance and long-term customer loyalty. Addressing these challenges will play a vital role in maintaining a competitive edge in the market.
