Out of Stock Implications

1

• Out of Stock Implications

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5 of Beer Sales Volume is Out of Stock on an
Average Day
Out of Stock levels vary by DSD category
Source GMA Full Shelf Satisfaction Study
3
Availability levels drop considerably for
promoted items, including beer
availability
Out of Stock levels quadruple when DSD products
are on promotion
4X
OOS
Note Audited OOS performance multiplied by
item's average daily movement
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Reducing Out of Stocks isImportant to Shoppers
Top ways retailers can improve the shopping
experience
Source GMA Full Shelf Satisfaction Study
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Avoiding Beer Out-of-Stocks Is Critical
What do you do if an item you want to buy is out
of stock?
Retailer Impact
39.5 of all OOS situations are potential for
lost sales
17.9 Net lost sales

• Because close to 40 of shoppers report avoiding
  purchase when faced with an OOS, the potential
  impact on the retailer is significant!

Source GMA OOS Study
6
Nearly 18 of Beer Shoppers are Buying Elsewhere
When Faced with an Out of Stock
Retailers are losing 18 of their beer sales to
competitors by being out of stock!
Source GMA Full Shelf Satisfaction Study
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Projected Across Multiple Stores, Lost Beer Sales
Due to Out of Stocks Become Very Significant!
Losses due to beer out of stocks represents
millions in lost sales
4.2 million
814
42,325
Average weekly loss (per store)
Annual loss (per store)
Annual loss(per 100 stores)
Source GMA Full Shelf Satisfaction Study
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Out of Stock Implications Summarized
Proper assortment is the key to maximizing
efficient shelf space

• Out-of-Stocks is a top three concern expressed by
  shoppers
• Promotional forecasting and ordering techniques
  should be standardized and in place in every
  store
• Proper assortment and shelf planning is critical
  to assure that the products that are in demand
  are on your shelves when the customer is in your
  store
• Planograms and shelf tags should be properly
  placed for restocking
• Store managers and vendor must work together to
  assure proper inventory levels
• 18 of beer sales are lost due to Out of Stocks

Source GMA Full Shelf Satisfaction Study