$93B Lost Annually Due To Unavailable Product
Out of stock items and misplaced merchandise create even more lost revenue opportunities than the numbers suggest.Retailers lost about $93 billion in possible sales in 2007 because customers couldn't get the products they expected, according to a study performed by the IHL Group and RIS News. The report identified these as out-of-stocks, but it used a rather expansive definition of out-of-stocks, including in-stock products that had an incorrect price, as well as in-stock but misplaced product that neither the customer nor the associate could easily locate.
But IHL President Greg Buzek said the figures "did not factor in any increase for the holidays" and used September as a standard month. "So the figure in real life is about one and a half times this number," he said.