OMG-Retail Lab Confirms Chronic Inventory Shortages Drive 22% Higher Leakage
Seeking to understand the impact of chronic inventory shortages in the pet category, the OMG-Retail Lab team turned to Placer data for an in-depth analysis. How could they validate whether the lack of stock availability drove customer leakage to specialty stores?
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The Challenge
After observing chronic out-of-stocks across multiple markets in a pet category, OMG-Retail Lab hypothesized that the trend was negatively impacting consumer behavior and loyalty. How could they validate whether the lack of stock availability drove customer leakage to specialty stores?
The Outcome
Using Placer cross-visitation data, OMG-Retail Lab consistently found stock availability to impact cross-shopping across four markets. Stores with a high out-of-stock rate suffered greater customer leakage, with one market seeing a staggering +22% increase in shared visitation with pet specialty.
With Placer, we were able to explore and validate our hypothesis that markets with high out of stocks saw an abnormally large increase in cross-shopping with pet specialty. The data is even more compelling when you realize that brick-and-mortar pet specialty traffic is trending down across the board... except for those markets with high out of stocks. Consumers are leaking because they can’t rely on the retailer to have it stocked.
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