This retailer lacked visibility into center store product availability for one of their key product categories. Working with Trax to understand current levels of out of stocks for core products, they found that the average out-of-stock persists for 31 hours before corrective action is taken.
Trax implemented its Retail Watch solution hosted on AWS that collects continuous shelf data from a combination of fixed cameras and smartphones operated by store staff. Real-time SMS alerts were sent directly to store managers and suppliers informing them of out-of-stock items.
Using this data, the retailer was also able to quantify the impact of OOS on sales. For example, they found that one of their core products was out of stock for 14 hours longer before Trax was implemented. By estimating the number of shoppers who may have looked for this product during this time, they were able to compute a “OOS Cost Lost” metric. Prioritizing products that incurred the highest losses due to OOS, the retailer adjusted their replenishment strategy and drove significant sales uplift.
Trax makes it very easy for us to measure availability and out-of-stock – these are critical issues to deal with.
David L, COO, Leading Supermarket Operator
The Bottom Line
Using Trax Retail Watch the client reduced the time taken to identify and fix OOS from 31 hours to 9 hours. By driving targeted actions across the floor, the retailer was able to increase OSA by nearly 14% in just a few weeks.