If retailers are out of stock, they may be out of luck.
New research from AlixPartners showed that two-thirds of consumers polled said they would leave an e-commerce site or store and shop from another retailer “when an item they are looking to purchase is out of stock, signaling that retailers need to optimize inventory management this holiday season if they want to prevent lost sales,” the firm said in a statement.
That sentiment emerged from AlixPartners’ annual Consumer Sentiment Index and holiday shopping report.
Other key findings include a strong preference for value price consistency and transparency, “with 85 percent wanting to see the same prices online and in stores.” The report’s authors said retailers need “to offer a cohesive omnichannel experience with consistent pricing and the products consumers expect. Today, only about 10 percent of retailers’ online assortments are available in-store, while 82 percent of consumers expect to find the same product across channels.”
AlixPartners said the index showed Chanel is winning in the luxury space, and “no one else is even close. Chanel resonates with consumers the most and ranked number one for all pillars: product, price, access, service and experience,” authors of the report said, adding that Chanel’s experiential initiatives “hit the service experience sweet spot and reinforce quality and personalization.”
The report noted that runners-up Louis Vuitton and Gucci “scored well on white-glove service and personalization.” In specialty apparel, American Eagle tops the charts. “American Eagle [AEO] was ranked first by around 30 percent of respondents, substantially ahead of other brands,” the report stated. “Younger buyers value a quality experience and other opinions, including giving customers time and space to shop; communicating clearly about the brand, and scoring well in customer ratings/reviews.”
“Consumers may be shopping digital channels first, but they are back in stores and incredibly frustrated when pricing is inconsistent or they can’t find in-store what they saw online — they are tired of doing the work,” said Sonia Lapinsky, partner and managing director and leader of fashion retail at AlixPartners. “Retailers need to reallocate resources to what matters for consumers — nailing the seamless experience and getting the right product in the right place. It’s crucial for retailers to hit the mark this season, or consumers will take their dollars elsewhere.”
AlixPartners said consumers were surveyed across the e-commerce, mass merchant and warehouse club, luxury, jewelry, outdoor and active, department store, specialty, off-price retailers and footwear subcategories. “The responses revealed that it’s Millennial consumers’ expectations that are driving the retail agenda,” the report stated. “While the industry often focuses on creating shiny new solutions, technology and activations to appeal to Gen Z shoppers, Millennials are wielding greater spending power as they advance in their careers and shop for their growing households and families.”
