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The Spotlight On “The Trillion-Dollar Black Hole” Of On-Shelf Availability
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For many years pre-COVID, the retail store shelf was a battleground for both retailers and consumer goods companies, yet out-of-stock rates in grocery have hovered at 8% with estimates as high as 10-15% on promoted items.
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Many grocery executives had essentially capitulated to the problem and accepted this On-Shelf Availability (OSA) problem as the operational norm. It had become so accepted that insiders have coined a phase to refer to the problem – “The Trillion-Dollar Black Hole”
So why have retailers and consumer goods producers struggled for decades to improve OSA and treated it as an invisible or unfixable problem?