Maximizing Religious Retail Sales with On-Shelf Availability
As the busy spring season ends, it is tempting to conserve cash by letting inventory levels stay low. This however can inhibit present and future sales.
A fully stocked store is essential for several reasons, each contributing to the overall success and customer satisfaction of the business:
- Meeting Customer Demand: Having a wide range of products available ensures that customers can find what they need when they visit the store. This reduces the likelihood of them leaving empty-handed or seeking alternatives elsewhere.
- Customer Satisfaction: When customers find everything they're looking for in one place, it enhances their shopping experience. They're more likely to return to a store where they consistently find what they need, leading to increased customer loyalty and positive word-of-mouth.
- Maximizing Sales Opportunities: A well-stocked store increases the chances of impulse purchases and upselling. Customers may discover new products or additional items they hadn't originally planned to buy, resulting in increased revenue for the store.
- Reducing Out-of-Stock Situations: Out-of-stock situations can be frustrating for customers and detrimental to business. They may lead to lost sales, negative perceptions of the store's reliability, and even loss of customer trust. Maintaining a fully stocked inventory helps minimize these situations.
- Enhancing your store's image. Nothing speaks louder than being fully stocked to let your customers know you are doing well and ready to serve them. Picked through displays and baron shelves tell them a different story.
You may want to seek out suppliers that do seasonal dating thereby allowing you to defer payments until the fall season is underway.
WHAT EXACTLY IS "ON-SHELF AVAILABILITY" (OSA)?
On-shelf availability (OSA) is a store’s ability to keep products adequately stocked on shelves at all times. When customers walk into a store, they have certain expectations about the items that should be available, expecting to find their favorite brands or a particular type of product. If a store doesn't meet those expectations, customers may leave empty-handed or shop elsewhere.
On-shelf availability is also directly linked to sales revenue and maintaining competitiveness in the market. In today's retail landscape, customers have more options than ever before regarding where they shop. When products are out of stock, customers cannot purchase them and are forced to shop elsewhere. This means that not only is the store missing out on potential sales, but stores are sending customers directly to the competition.
Even a slight decrease in on-shelf availability can significantly impact the bottom line. By maintaining high levels of OSA, stores can differentiate themselves from their competitors, providing a reason for customers to choose them over other options.
WHAT QUALIFIES AN "OUT-OF-STOCK"?
In retail, "out-of-stock" refers to a situation where a product is unavailable for purchase at a given time. Even if you have more product in storage, if shelves are empty, it qualifies as out-of-stock. This is because customers may not be willing to wait for the product to be restocked or may not be aware that the item is available in storage.
Retailers must manage their stock effectively to prevent losing customers to their competition. Customers perceive empty shelves as a sign that the store is poorly managed or not adequately stocked, damaging a store's reputation and leading to a loss of customers.
Having empty shelves may be due to insufficient inventory, unexpected demand, or restocking issues due to imprecise item management. Retailers must manage their inventory effectively to ensure that products are readily available for purchase and that customers can find what they need on the shelves to provide a positive shopping experience, increase sales and revenue, and build a loyal customer base.