Food Marketing Institute, Grocery Manufacturers of America - In the Mix - Brief Article

DSN Retailing Today, Nov 11, 2002

WASHINGTON, D.C.--A new study reveals out-of-stock issues usually start at the retailer, not manufacturer, level. About 47% of the problem is caused by inadequate store ordering and forecasting, while 25% is related to poor shelf management, according to the study by the Food Marketing Institute, Grocery Manufacturers of America and The Food Business Forum.

Worldwide, the average rate for out-of-stocks is 8.3%, a number that has not declined from earlier studies. Other details of the study noted how consumers respond to out-of-stocks. An average of 31% said they would go to another store, while 26% would substitute another brand. Nine percent opted against any purchase. The study, funded by a grant from Procter & Gamble, surveyed 661 retail outlets, 32 product categories and 71,000 consumers in 29 countries.