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Stockouts, customer loyalty top challenges for grocers, reveals data

Stockouts, customer loyalty top challenges for grocers, reveals data

Author: Maria Alejandra Lopez 

Source: Shopper Experience 

Stockouts and retaining customer loyalty are two top challenges facing the retail grocer segment, according to the 2019 Grocery Insights Data Report, released by Rubikloud, which provides AI and machine learning technology to the retail industry.

The report data came via an online survey of grocery and retail merchandisers and revealed 50% are experiencing 3% to 4% of stockouts throughout the year — due to human error and unanticipated spikes in store foot traffic, according to a press release.

While 58% of grocery and retail merchandisers are using technology to manage forecasting, many solutions are not helping, the release said, and legacy systems don’t provide a full picture of real-time inventory or offer predictive technology. Such a scenario can impact customer loyalty, noted the release.

«Grocers are facing wave after wave of disruption in an industry that’s already plagued with tight margins, high perish-ability and a heavy reliance on promotions,» said Kerry Liu, co-founder and CEO of Rubikloud, in the release. «Grocers can no longer depend on outdated, legacy technology that is unable to predict consumer demand based on omnichannel shopping patterns.»

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