The holiday rush is here, and the stakes are high for brands and retailers alike. As consumers flock to stores in-person and online, the importance of on-shelf availability (OSA), planogram compliance, and display compliance cannot be overstated.
On-Shelf Availability and The Cost of Empty Shelves
Visibility challenges persist in understanding OSA in-store. Relying solely on traditional inventory tracking can't tell the whole story of what's happening on store shelves. While systems can track product counts, they can't show how items are displayed—whether they're properly placed, or if shelves look appealing to shoppers. These visibility gaps can be detrimental during the holiday season when stock issues can severely impact sales and customer loyalty.
A product that’s not on the shelf is a product that’s not making money, especially when shoppers are on the hunt for gifts and holiday essentials. Stock shortages are a recurring issue, with 47% of shoppers reporting sometimes encountering out-of-stock items during the holiday season. 35% say they experience OOS frequently and only 10% reported that they rarely run up against this issue.
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These stock issues don't just inconvenience shoppers; they often lead to changes in consumer behavior. When faced with empty shelves, consumers quickly adapt. According to our survey, 43% frequently switch to different stores, and another 38% sometimes make the switch. 12% always go to a different retailer. Only a small number rarely or never switch even when the pickings are slim. This consumer movement highlights the importance of maintaining proper stock levels.
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Addressing OSA efficiently is key to capturing every possible sale during this high-demand season.
Henry Ho, Chief Strategy Officer at Field Agent with over 40 years of industry experience, explains, "The retail environment has changed immensely with each decade, as technology and shopper expectations and behaviors have evolved. Leading retailers are trying to stay ahead of those new and emerging demand trends and the supply chain challenges that correspond to those changes. Staying in stock, and addressing OSA has never been more important for sales, supply chain, and category management leaders."
Beyond Availability and The Impact of Strategic Product Placement
While keeping products in stock is crucial, the ease of finding them on shelves is equally important. Our findings show that when shopping for the holiday season, the ease and convenience of product placement on the shelf plays a significant role in the final purchase decision. In fact, 30% of shoppers found it very important to easily find items they want, while 28% rated it as both somewhat important and extremely important. The data clearly shows that strategic product placement is as crucial to sales success as maintaining stock levels.
To easily locate products, the actual presentation of products on shelves also influences purchasing decisions. During this critical period, if a shopper walks into a store and finds a messy or empty shelf, that’s a missed opportunity that may push them to look elsewhere. Participants were clear on the impact of shelf presentation matters. 71% said that the appearance of messy or poorly organized shelves discouraged them from purchasing holiday items. Keeping shelves tidy and well-stocked is a significant factor in capturing consumer interest and ensuring purchases.
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Planogram Compliance That Drives Shopper Engagement
As the holiday crowds grow, planogram compliance becomes essential for success. Shelf space is prime real estate, and planograms serve as the blueprint for holiday sales. Are those holiday chocolates positioned prominently and replenished regularly? Following planogram compliance enhances the ability to capture the attention of time-pressed shoppers.
Survey results indicate that strategic shelf stocking has a direct influence on consumer behavior. When asked how likely they were to visit a store based on its ability to keep holiday products well-stocked, 45% of respondents answered very likely, and 33% said they were extremely likely to do so.
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Additionally, survey results doubled down on the fact that brands with more shelf space do gain greater consumer attention. When asked if shoppers were more likely to notice and purchase a brand with more shelf space, 55% responded definitely and probably yes. This highlights the importance of maximizing shelf space to improve brand visibility and capture shopper interest.
Display Compliance That Drives Shopper Behavior
During the holiday season, compliant displays do more than just showcase products; they create a purposeful shopping path, making it easy for shoppers to see, engage with, and purchase items. From promotional bundles to eye-catching endcaps, display compliance shapes moments of engagement that lead to sales.
%20.png?width=2000&height=1595&name=Graph%205_%20How%20often%20do%20in-store%20promotions%20%20(like%20special%20displays%20or%20bundles)%20.png "How often do in-store promotions (like special displays or bundles) influence your decision to purchase for the holidays?")
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Survey data reveals that 60% of shoppers are frequently or always influenced by in-store promotions in making their final purchase decisions. By strategically guiding the shopper's journey through effective visual merchandising, compliant displays can make the difference between a product staying on the shelf or landing in a shopping cart.
With these challenges in mind, brands and retailers must gain real-time visibility into what’s happening on shelves. Ensuring that products are available, properly placed, and compliant with planograms can bridge the gap between what consumers expect and what they actually find in-store. Aligning online information with in-store availability is crucial. More than half of respondents check product availability online before visiting the store: 78% do so occasionally or frequently, and 17% always check beforehand. Discrepancies between online expectations and in-store reality can lead to missed sales and frustrated shoppers.
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Stock issues can also drive consumers to choose alternative brands. Survey results show that 50% of respondents occasionally switch brands when preferred items are unavailable. Maintaining stock availability for key products is important for reducing brand-switching and sustaining customer loyalty. This is especially true as consumers increasingly expect an omnichannel shopping experience that reflects accurate availability across all platforms.
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Top Takeaways
The holiday season presents a critical opportunity for retailers to capture consumer attention and drive sales. Addressing on-shelf availability, planogram compliance, and display presentation is essential. These efforts help ensure products are visible, accessible, and appealing to shoppers.
Shelfgram provides the necessary tools to monitor, adjust, and perfect the in-store experience. This can turn holiday visibility into sustained retail success. Shelfgram helps ensure shelves are stocked, compliant, and shopper-ready, so brands can continue to be part of the evolving retail story not just during the holidays, but all year long.
- On-Shelf Availability (OSA) is Key: Ensuring products are stocked and easy to find is crucial to prevent customers from turning to competitors.
- Planogram and Display Compliance: Proper product placement and visually appealing displays are essential for capturing shopper interest and maximizing sales.
- Shelf Visibility Tools like Shelfgram Matter: Real-time visibility helps retailers keep shelves stocked, compliant, and aligned with consumer expectations both in-store and online.
To learn more about how Shelfgram can help your brand or retail business optimize its shelf strategy and capture holiday sales, visit app.shelfgram.com or contact our team today.
Thank you for diving in with us to analyze shopper behavior in the 2024 holiday season! Now that you're equipped with actionable insights into what today’s budget-savvy, experience-driven shoppers want, it’s time to bring those strategies to life.
The holidays are a make-or-break moment to create memorable experiences, from pricing and promotions that resonate to displays that captivate. We've covered the shifts in shopper behavior, the rising importance of value, and the nuances of an impactful store presence.
Now, it’s up to you to take these insights, put them into practice, and capture the attention—and dollars—of holiday shoppers. With Field Agent and Shelfgram tools in your back pocket, you have the tools to monitor, adapt, and optimize your in-store execution, so every interaction counts.
All survey respondents were U.S. adults at least 18 years of age and smartphone owners.
The survey was executed through the Field Agent platform, October 16–23, with a random sample of shoppers, download our full study for free!
Demographics:
- Gender - Female (76.7%), Male (21.0%), Prefer Not to Say (0.23%)
- Age - 18-29 (15.1%), 30-39 (33.5%), 40-49 (29.5%), 50+ (21.8%)
- Household Income - < $35K (15.9%), $35-49K (11.0%), $50-74K (13.1%), $75-99K (12.1%), $100-125K (7.4%), $125K+ (11.6%), Prefer Not to Say (8.8%)
- Race/Ethnicity - Caucasian/White (60.1%), Latino/Hispanic (8.4%), Asian American (6.9%), African American/Black (7.5%), Native American (1.3%), Other (2.5%)
