“The first rule of retail is that empty is always wrong,” says Mike Matacunas, president and CEO of SPAR Group which just released a new study on how consumers are dealing with the latest threat to retailers: Out-of-stocks caused by tariff issues.
The new survey found that 74 percent of consumers rate product availability as the single most important factor when choosing which store to shop at. The flip side of that is that 73 percent said out-of-stocks were the leading deterrent to their shopping experience.
“After decades of investment, inventory in-stock, plan-o-gram compliance and optimal replenishment remains elusive,” the SPAR executive said. “Retailers and brands pay for data based on point-of-sale transactions as a proxy to monitoring inventory velocity, but this information is too late to make a difference. It’s like driving your car looking in the rear-view mirror.
“This shopper study underscores the impact of distorted inventory – disappointed consumers, lost sales, lower margins. I am encouraged by the trend towards digital shelf innovation, but cautious based on the consumer’s plans to navigate tariffs. We need to be bolder as an industry and embrace innovation. Great merchants test and learn.”
SPAR, which is in the business of helping retailers manage their inventory and supply chain through technologies, found that almost half of shoppers are very concerned about tariffs. It said that many expect to look for more coupons or sales, buy less overall or switch brands. Shoppers in the 18 to 39 age group are especially likely to anticipate significant increases in expenses and express higher levels of concern, the new study found.
The survey also asked shoppers about technology, and interestingly, wanted to know what they thought of in-store robots. SPAR found that 71 percent of shoppers are “uncomfortable or unsure” with the idea of automated robots roaming around stores. Not surprisingly, younger shoppers in the 18 to 54 age group said they were more open to the idea.
The study was conducted this past June, asking 1,000 consumers between the ages of 18 and 64 who said they were the primary or secondary shoppers, their thoughts on all of this.