Pricer research: Brexit to blame as Brits say many items in weekly food shop are out of stock in stores
Ongoing supply chain disruption, delays at the border and inflationary pressures on food producers are among the issues UK shoppers blame for rising instances of out-of-stocks on supermarket shelves, according to research by Pricer, an in-store automation and communication solutions provider.
1,000+ Brits polled by Pricer showed that now typically consumers find 18% of the items in their weekly food shop unavailable on shelf when they shop in-store, rising +1 percentage point year-on-year. Instances of out-of-stocks were higher when buying groceries online, with 28% reporting food shop items were out-of-stock, prompting them to be missing or substituted in their orders, a rise of +6% year-on-year.
Brexit was the top reason UK shoppers believed was contributing to the shelf-gaps they were experiencing in-store, with 40% of respondents citing complications with border checks and additional paperwork making it harder to import food goods into the UK. While the UK government announced it would delay planned post-Brexit checks on fruit and veg for a third time earlier this month, 52% of UK consumers believe more products are unavailable due to the UK’s decision to leave the EU.
Meanwhile, despite only a small proportion of UK food trade relying on Red Sea routes, 39% of UK shoppers felt that the supply chain disruption from the Red Sea Crisis had led to more stock being missing from shelves in-store.
38% blamed increased shelf-gaps on inflationary pressures on food suppliers’ production and manufacturing, impacting their ability to meet demand, and a further 37% felt rising out-of-stocks were due to food producers going out of business because of rising cost pressures.
And, at the same time grocery retailers are facing multifaceted supply chain challenges, consumers expectations around product availability are rising. Now 74% of customers expect products to be available when they go into store, an increase of +5 percentage points year-on-year. And while 67% would make do with an alternative if an item was out-of-stock, 43% would abandon their entire basket.
Peter Ward, UK Country Manager at Pricer, comments: “Our research shows a direct correlation between on-shelf availability (OSA) and customer loyalty, with 72% of shoppers more likely to shop with grocers who have good product availability.”
“We know out-of-stocks cause losses in so many areas - lost sales, lower customer satisfaction, reduced market share - as well as higher labour costs resulting from trying to fix poor OSA with outdated systems and processes. By fostering collaboration among retail managers, staff, and technology companies, supermarkets can significantly improve their inventory management and customer service.”
2024 RTIH INNOVATION AWARDS
Physical stores are a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.
The awards, sponsored by Scala, CADS, 3D Cloud, Brightpearl by Sage’s Lightning 50, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.
Key 2024 dates
Friday, 25th October: Award entry deadline
Tuesday, 29th October: 2024 shortlist revealed
30th October-6th November: Judging days
Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.
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