Out-of-Stocks

Definition

Out-of-stock at the store level means a given, normally stocked product is not available at a specific time.

Out-of-stocks (or stock-outs) quantify the number of retail outlets where an item is expected to be available for customers but is not. It is typically expressed as a percentage of stores that list the relevant item.

Out-of-stocks (%) = Outlets Where Brand or Product is Listed But Unavailable (#) ÷ Total Outlets Where Brand or Product is Listed (#)

In addition, three outlet weighting methods can be applied to the calculation:

  • Numeric – outlets are unweighted
  • ACV (all commodity volume) – outlets weighted by total sales of all commodities
  • PCV (product category volume) – outlets weighted by sales of a specific product category, such as toilet paper

References

  1. Bendle, Neil T., Paul W. Farris, Phillip E. Pfeifer, and David J. Reibstein (2016). Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance (Third Edition). Upper Saddle River, New Jersey: Pearson Education, Inc.
  2. Common Language in Marketing Project, 2020.

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