In the competitive world of retail, ensuring that products are readily available to customers is paramount to success. However, maintaining optimal on-shelf availability (OSA) can be a daunting task. Out-of-stocks, theft, and asset protection issues can significantly impact sales, customer satisfaction, and brand reputation.

The adage "you can't fix what you can't measure" rings true in the context of on-shelf availability (OSA). Without accurate data on the extent of these issues, retailers are left to operate in the dark, unable to identify and address root causes.

The Impact of Out-of-Stocks

Out-of-stocks can have a devastating impact on retail sales. Studies have shown that up to 35% of lost sales are due to out-of-stock items. When a customer cannot find the product they are looking for, they are likely to abandon their purchase and shop elsewhere. This not only results in lost sales but also damages customer loyalty and brand perception.

Theft and Asset Protection

Theft and asset protection are also major concerns for retailers. Shrinkage, the loss of inventory due to theft, shoplifting, and other factors, can account for significant losses. In 2020, shrinkage cost retailers an estimated $94 billion.

Measuring and Addressing the Issues

To effectively address these challenges, retailers need to implement comprehensive measurement and tracking systems. This includes:

• On-shelf availability audits: Regularly audit shelves to identify out-of-stock items and track OSA percentages.
• Inventory control systems: Implement robust inventory control systems that accurately track stock levels and identify discrepancies.
• Loss prevention strategies: Employ loss prevention strategies, such as surveillance cameras and security personnel, to deter and prevent theft.
• Data analysis and reporting: Collect and analyze data on out-of-stocks, shrink, and loss prevention efforts to identify trends and areas for improvement.

Technology Solutions

Retailers are increasingly turning to technology solutions to enhance their OSA, loss prevention, and asset protection efforts. These solutions include:

• RFID tags: RFID tags can be attached to individual items, providing real-time visibility into inventory levels and location.
• Shelf sensors: Shelf sensors can detect when products are missing and alert store personnel to replenish stock.
• Video analytics: Video analytics systems can detect suspicious behavior and identify potential shoplifters.

Conclusion

By implementing comprehensive measurement and tracking systems, retailers can gain valuable insights into their OSA, out-of-stocks, and theft/asset protection issues. This data can then be used to identify and address root causes, improve processes, and implement effective strategies to minimize losses and maximize sales. In the ever-evolving world of retail, data-driven decision-making is key to success.

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About Retail Aware

Retail Aware helps supplier brands and retailers capture first party-data from product displays to improve performance of in-store investments. Leveraging proprietary technology, Retail Aware measures product movement and shopper behavior to help clients solve problems such as phantom inventory. Schedule 15 min with a solutions advisor or click here to access a demo account today! 

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