Product availability has become one of the most powerful drivers of customer loyalty in UK grocery retail, according to new research from DHL Supply Chain and Retail Economics.
The Availability Effect report finds that convenience and reliability now outweigh price for one in three shoppers, indicating a shift in loyalty drivers. Based on in-store audits, a survey of 2,000 households, and economic modelling, the study details the extent and financial impact of stock gaps.
The report reveals that one in five grocery trips involves at least one missing item, resulting in approximately 930 million disrupted visits and £2.1 billion in displaced sales annually. Forty-four percent of consumers have switched or added a supermarket in the past year due to availability issues, rising to nearly two-thirds among those under 45. Additionally, 59% of shoppers cite availability as a key reason for shopping at multiple stores.
Convenience stores face the greatest challenges
Convenience stores account for about 20% of grocery sales but represent nearly half of all displaced spending caused by stock-outs. Their availability rates are typically in the low-to-mid 80% range, compared to over 90% in larger formats. Sixty-three percent of shoppers believe convenience stores perform worse in this area.
Nick Archer, Managing Director for Convenience and Consumer at DHL Supply Chain, says even small gaps carry outsized consequences: “The research shows that even small stock gaps can have a significant impact on how shoppers feel about a retailer. Despite the pressure on shoppers’ wallets, loyalty is being driven by more than price,” he said.
Availability remains a top priority
Availability, he adds, has become a competitive differentiator. “Being competitive in today’s market requires precision. Retailers and their partners need to be able to predict disruption, integrate data and execute efficiently.”
Richard Lim, chief executive of retail economics, points to shifting lifestyles and expectations: “Customers expect to find what they need quickly and easily… availability has become the clearest sign of reliability,” he said. “Retailers who get it right will be the ones who earn trust and lasting loyalty.”
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