Everything you need to know about in-store OOS
Each year, out-of stock (OOS) represents a significant turnover loss for industrials and retailers: more than 1,2 billion euros in hypermarkets in 2018 according to ECR-IRI’s barometer! In this context, we are working with more and more clients on this subject to establish an in-depth situational analysis and identify which brands and stores are the most affected by OOS. The goal is also to find concrete ways to reduce in-store OOS. In this article, we will share with you few key insights drawn from the study.
10% IS THE AVERAGE OOS AND LOW ON-SHELF AVAILABILITY (OSA) rate
In average, we have observed an OOS rate of 6%. Beyond pure OOS, we also have measured the OSA which designate a risky level of stocks (defined according to the product’s rotation). The OSA rate is going up to 4%.
Like OOS, OSA also generates a potential turnover loss because it leads to a lower visibility on the shelf and a OOS risk during the day. Thus, those two indicators must be closely monitored.
DIFFERECENCES BY RETAILER
OSS average rate depends on hypermarkets & supermarkets but we have observed real differences between retailers. Géant Casino & Casino Supermarkets are the lowest performers: their OOS rates are 35% higher than the average rate. In contrast, Auchan is the best performer. This may be explained by bigger stores and then bigger shelf space allocations.
Comparison of the OOS rate by retailer - Mobeye store-checks on 10 FMCG & Fresh self-service categories
Here are some OOS examples that we have observed in various stores during the study.
WE CAN SUPPORT YOU ON THIS TOPIC
OOS mustn’t be overlooked because it can have a significant impact on your results. Here is how we can support you:
• Full diagnosis: by reference, by store, by day, by hour…
• Shortfall calculation linked to the OOS in order to prioritize actions implementation.
• Operational recommendations to limit OOS on your products.
OOS is often caused by a weak shelf space allocation. Thanks to an in-depth study, we can link the number of facings of a product and the OOS rate. Thus, we can give you the ideal number of facings to have on your references.
OOS rate and OSA rate on a given product, according to the number of facings
In this example, we can observe a significant OOS rate when stores displays only one facing by reference. From 3 facings in hypermarket and 2 facings in supermarket, the OOS rate is reduced to 3%.
Discover how our clients have boosted their retail execution thanks to Mobeye.
Jérémie Loizeau, Category Development & Shopper Manager at Barilla explains you how the Harrys brand has measured and analysed OOS in store thanks to a Mobeye study.
If you want to know more about it, please get it touch.
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