Supermarket stock issues result in over £2bn in displaced sales, according to DHL report

The findings showed that 20% of grocery trips involve at least one missing item, equating to around £2.1bn in displaced sales in roughly 930 million shopping visits annually.

The report, The Availability Effect: Why trust, margin and loyalty start at the shelf edge, which involved surveying 2,000 UK households, also revealed that 44% of customers said they have “switched to or added” another supermarket in the last year because of stock availability problems.

This rose to almost two-thirds of shoppers under 45, with 59% saying availability is a “key reason” why they visit multiple shops.

The findings also highlighted that product availability is now one of the leading drivers of loyalty across grocery retail in the UK. Convenience and reliability now outweigh price for a third of shoppers.

Convenience stores account for around 20% of grocery sales but now make up nearly 50% of all displaced spends because of stock-outs. 

Availability in convenience stores usually sits at around 80%, compared to over 90% in larger supermarkets. This is backed by 63% of surveyed shoppers believing availability is worse in convenience stores.

DHL supply chain managing director of convenience and consumer, Nick Archer, said: “The research shows that even small stock gaps can have a significant impact on how shoppers feel about a retailer. 

“Despite the pressure on shoppers’ wallets, loyalty is being driven by more than price. In a market where customers can switch stores with ease, availability is much more than an operational metric. Being competitive in today’s market requires precision. Retailers and their partners need to be able to predict disruption, integrate data, and execute efficiently”.

Retail Economics chief executive Richard Lim added: “In today’s environment of busy lifestyles, hybrid working and smaller, more frequent shopping trips, customers expect to find what they need quickly and easily. 

“This is not only limited to grocery, but in all retail sectors, from fashion to beauty. Convenience comes down to having products there when the customer needs them, and availability has become the clearest sign of reliability. Retailers who get it right will be the ones who earn trust and lasting loyalty”.

DHL and Retail Economics will dive more into the findings at LIVE: Retail Week x The Grocer on March 3.