Retail’s Worst Nightmare: The Case For Local Visibility
By Bob Bahramipour, Gigwalk
Imagine you are a parent during back-to-school season. You act early and get everything on the list with the exception of one last item: A backpack. Not just any backpack, but the very specific one your child has been dreaming of. You enter the last store on your list and are told they carry the coveted backpack. You hit the shelves only to find it’s out of stock. You have been shopping all week and you’ve had it. So you reach over, pick up the competitors backpack, turn to your child and say, “sorry kid.”
As a brand, you cringe — you have now been passed up for another product on the shelf. Unfortunately, this scenario is all too common and it’s precisely these inefficiencies in retail execution that cost brands and retailers billions each year — for example, $800 billion is lost globally to out-of-stocks alone.
Shocking, I know — but there’s hope.
While you can’t be at every store at once, you can use data and on-the-ground resources to ensure your goods are in stock in the right place and being marketed accordingly. Here are a few things you can do to increase operational efficiency.