Customers feel disappointed when they find empty shelves in a retail store. Retailers know that customers will usually buy similar products instead of ones they can’t find. Maybe there will be some minor financial loss when a company switches from one supplier to another, but that’s a small price. In this blog we will see how we can avoid stockouts of retail store.
What happens when customers can’t find products they want?
Let’s look at what happens when our shoppers can’t find their favorite soap. To find out how consumers respond to stock-outs, researchers surveyed 71,000 people in 29 countries. When people can’t find the kind of product they’re looking for, they often choose few other options.
When you’re out of a product, customers may choose from different options to meet their needs, including finding an alternative product at another store.
Future Market Insights says Sales of on-shelf availability solutions are expected to reach $3.7 billion by 2021, growing at an 8.4% CAGR between 2022 and 2028. Increasing adoption of radio frequency identification (RFID) technology and Internet of Things (IoT) based sensors for supply chain management is fueling the market.
Source: Future Market Insights
What occurs when a product category is out of stock?
When a product category is out of stock, around 7% to 25% of consumers will persist in their shopping trip but will not substitute that item. Instead 14 to 32 percent will buy an item at another retailer. The study says that stock-outs can lead to lost sales for retailers. The retail sales losses from the practice of abandoning carts can be as much as 4% for a typical retailer. For a billion-dollar retailer, that’s an enormous loss in potential sales.
What’s the solution to avoid stock-outs completely?
Visionify Out of stock solution analyses shelf conditions. It connects with a retail store platform that allows stores to restock items automatically. Locates and suggests products that need to be restocked and informs store managers about those locations so that customers get what they need without fail. Works to make every aisle efficient and productive.
How does our solution work?
We offer computer vision cameras that allow retailers to track shelf inventory. With the help of deep-learning algorithms, cameras send images to cloud servers, where they are analyzed. They can use technology to automatically identify products on retail store shelves and send alerts if any shelf space is left empty. We match the size and layout of each store to the right camera. Shelf-edge cameras capture grocery items, and dome cameras typically do better with new products.
Are you having stock-out issues in your retail store? Connect with us to know how our out-of-stock solution can integrate with your retail store to solve stock-outs simply.