The Hidden Killer of Retail Profits: Understanding the True Cost of Out-of-Stocks
A shocking reality that still affects retailers: the average retailer loses 4% of their annual sales to out-of-stocks. But here’s what keeps me up at night – that number only tells part of the story.
Let’s dive into the real impact:
The immediate loss? That’s just the tip of the iceberg. When customers can’t find what they’re looking for, 31% will buy it elsewhere. But here’s the truly scary part – 14% will stop shopping at your store entirely. We’re not just losing a sale; we’re losing customers for life.
In dollar terms, out-of-stocks cost retailers globally over $634 billion annually. For perspective, that’s more than the GDP of Sweden.
Here’s where computer vision changes everything. At Braingine, we’re seeing transformative results:
Real-world example: A regional grocery chain implemented our computer vision solution last quarter. The results?
- Out-of-stock detection time dropped from 12 hours to 3 minutes
- Stock availability improved by 31%
- Staff efficiency increased by 45% (no more manual shelf checks)
- Customer satisfaction scores jumped 28%
The game-changer? Our AI doesn’t just detect empty shelves – it predicts them. By analyzing shopping patterns, we alert staff BEFORE shelves go empty. It’s like having a crystal ball for inventory management.
The best part? Installation takes days, not months, and the ROI typically shows up in the first quarter.
I’m curious: What’s your biggest challenge with inventory management? How are you currently handling out-of-stocks?
