Ask any retailer in North America about the greatest challenge that they face, and most will mention improving the customer experience. A close second will be competition with Amazon and Walmart marketplaces. When you combine these two realities we now have a situation in retail where customers that used to HAVE to shop now must WANT to shop.
Today retailers are looking at many different options to improve the customer experience. These can include Buy Online and Pick Up in Store (BOPIS), Click and Collect where consumers pick up purchases at the curb, and Ship from Store have only further exposed the problems of out-of-stocks.
IHL has been studying out-of-stocks for more than 10 years but this the first study that considers the impact of online competitors and the impact of Amazon Prime on consumer’s decisions to visit stores and how they react to out-of-stocks. In fact, the survey suggests that over 24% of Amazon’s retail revenue comes from consumers that first tried to buy the product at their local stores.
This study goes over the costs of out-of-stocks for retailers and why it is more critical than ever for retailers to focus on the problem as it is driving customers away.
This free research goes over the challenges facing retailers and how controlling the cost of cash handling can free up the labor to meet the needs of the customers in 2018 more profitably.
We would like to thank Radial and DSCO for sponsoring the distribution of this research. Because of their generosity the research is a free download to others.