Shortage of Products On
Store Shelves Leads to
Consumer Infidelity
According to a study by
the Organización GS1
Costa Rica, consumers
are becoming less loyal
to a particular
supermarket mainly due
to items not in stock,
deciding to make their
purchase elsewhere.
The study analyzed the
four main supermarket
chains Auto Mercado,
Mega Super, Perimercados
and Wal-Mart, which
operates the Mas x menos,
Palí, Maxi Bodegas and
HiperMás chain of
stores, takes into
account consumer
practices over the last
five years.
According to the study,
in 8.8% of the cases
when a consumer does not
find a particular item,
they will make their
purchase at a competing
store. In 2006 the
number was 7.63%
The study takes into
account the buying
practices of consumer
when the item they
intended to purchase is
not available, which
happens frequently. The
lack of merchandise
leads consumers to lose
their loyalty to one
supermarket, preferring
not to wait for the item
to be stocked, but
rather to make their
purchase elsewhere.
The GS1 study took into
account 80 separate
visits to 20 different
stores between May 7 and
24 and polling some 600
customers in varying
hours of the day.
40% of the customers say
they do not have a fixed
supermarket to do their
shopping. Of the polled,
38 out of 100 said they
would substitute a
product if their
favourite was not
available, while 45%
said they would go to
another store.
According to Guillermo
Varela, director of GS1,
the major reason for the
lack of merchandise on
store shelves is the
store failing to order
the correct quantity
from the supplier and
also due to the
centralized distribution
process that is
cumbersome to get the
product to the store
shelves in time.
In case of Wal-Mart
where 80% of its
merchandise is supplied
by medium and small
businesses in Costa
Rica, the suppliers
failed to supply
merchandise on time.
"The study shows us that
almost 50% of the
suppliers do not
distribute in time. In
the case of a local
company, it means it is
not planning the demand
correctly, meaning it is
producing less than is
being bought. In some
cases it is a problem
with lack of raw
material", said Varela.
Varela added that the
study reveals that
shelves are the most
bare on Sundays.
Other factors revealed
by the study include
that in 30% of the times
the product is not
available because it is
no longer in production;
28% the supplier does
not deliver on time; and
23% stock inventory has
been depleted; and 6%
the shelves have not
been stocked. |
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