Study Examines Out-of-Stock Problem

Jun 07, 2002

Increasing product availability on the store shelf can boost retail sales by three percent or $200,000 annually per average supermarket, according to a new study from GMA’s Direct Store Delivery (DSD) committee.

The study, conducted by Roland Berger Strategy Consultants, revealed that consumers
couldn’t find the product they want to buy 7.4 percent of the time they shop.
Forty percent of those shoppers confronted with an out-of-stock product situation
either postpone their purchase or shop elsewhere, putting six billion dollars
in annual retail sales at risk in the top 25 grocery categories.

The study reflects audits of 1,600 items across seven DSD categories in four major retail chains, including Albertson’s, Publix and Winn-Dixie. In addition, ems provided data and analysis of the top 25 grocery categories in 500 stores.

GMA’s DSD committee developed six key steps for improving product availability, including:

  1. Optimize Delivery and Merchandising Schedules and Back-Door Procedures.

  2. Improve Physical Space Constraints.

  3. Develop Better Communication between the DSD Manufacturer and Retailer.

  4. Align DSD Manufacturer and Retailer Practices.

  5. Define Planogram and Shelf Tag Compliance.

  6. Create Joint Scorecards.

GMA’s DSD Out-of-Stock study will be available at GMA’s Executive Conference. For more information, contact Erin Harcourt at 202-337-9400.

Moderator Comment: Can retailers and DSD suppliers
find common ground to reduce out-of-stocks?

Consumers want what consumers want.

Retailers want more frequent and responsive delivery

DSD suppliers want more shelf space.

Retailers want more money for more space.

DSD suppliers do not wish to pay any more (or what they
are now) for slotting.

Consumers want what consumers want.

What’s the solution? [George
Anderson – Moderator

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