Brands that sell their products in retail stores have to make sure they are always available and easy to locate on shelves if they want to remain relevant. Maintaining adequate stock levels is important for a number of reasons:
Increased sales
If a customer goes to a store to look for a certain product and it’s not there, they are likely to choose a different brand or may even go elsewhere, which leads to lost sales and revenue. When your product’s on-shelf availability is maintained, it means sales are increased. A recent poll showed 67% of shoppers are more loyal to stores with well-stocked shelves
Brand loyalty
Research also shows that customers who consistently see their preferred brands on shelves are likely to be more loyal to them and their trust in them is reinforced.
Cost reduction
By maintaining and managing on-shelf availability, brands can optimise their inventory levels and avoid stock shortages. Excess inventory leads to additional storage costs, but this can be avoided through good data. Many brands use the services of a data analysis company, such as https://shepper.com/
Forecasting
By analysing inventory levels and sales data, future demand for products is made easier, allowing brands to manage production and supply chain to ensure on-shelf availability now and in the future.
Customer satisfaction
When the customer can quickly and easily find what they’re looking for, it improves their shopping experience. This can then lead to increased brand awareness and word-of-mouth recommendations to others, which then gives the store owner a competitive advantage.