A panel at Retail Innovation Week revealed a critical issue undermining consumer trust and retail profitability: poor on-shelf availability (OSA). The discussion highlighted how empty shelves don’t just cost a sale – they cost loyalty, future revenue and competitive edge.
$1 Trillion in Missed Sales
Panelists recounted personal frustrations at Walmart – failing to find promised tires and printer cartridges – which mirror widespread consumer experiences. One panelist said in the last six months, almost everyone in the room has tried to buy something in-store that wasn’t there.
These failures represent over $1 trillion in missed global sales annually.
Algorithms to the Rescue
Brennan Stoufflet of bops introduced an algorithmic approach to detect OSA issues by analyzing sales dips and replenishment data. Platforms like bops help retailers and suppliers act on this data collaboratively, reducing markdowns and restoring shopper satisfaction.
Crowd-Sourced Store Audits
Henry Ho, co-founder of Storesite (formerly Field Agent), said low-velocity items – products selling only a few times a month – escape algorithms. His solution: mobilize 3 million everyday shoppers to photograph and report real-time shelf conditions. This crowd-sourced data could close the visibility gap.
Robots + RFID for Real-Time Accuracy
Len Wierzbicki of Badger Technologies showcased autonomous robots scanning shelves pre-dawn with computer vision and RFID. These robots detect pricing errors, out-of-stocks and misplaced products, feeding actionable insights directly to retail teams.
Thermometer or Thermostat?
The panel closed with a sharp analogy: Are you using tools as a thermometer and just measuring, or as a thermostat, which adjusts conditions?”
Fixing OSA isn’t just about detection. It’s about real-time resolution to prevent customer churn.
“There is only one boss," Sam Walton once said. "The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else."
Explore more insights from Retail Innovation Week and the future of omnichannel retail at dbbnwa.com.
