Email
sinha.rk.dr@gmail.com
When a retailer runs out of a category, whom does he approach?
Retailers like to keep their shelves full. A category shelf may sometimes have stockout of a specific brand, but the consumers have the option of buying the competing brand. However, there are times when the store may run out of the entire category.
Category stockouts worry the retailers, as consumers may switch to their competitors. Merchandising teams do contact the brands for urgent delivery. The question is… which brand do they reach out to?
It’s not necessarily the brand leader. It’s usually the company with the most flexible delivery practices, who can deliver out of turn. This flexibility earns them higher revenue as well as higher market share in the store.
If your company doesn’t have this flexibility, how much money are you leaving on the table? And ceding market share to your more flexible competitor?