A Toy Story – A Toy Company Case Study You Won’t Want to Miss

This past December, a Canadian toy company approached us to ensure their product was stocked at two major Canadian retailers, nationally.

In total, we visited 385 stores and found that stockouts were through the roof. An astonishing 30% of the time we found that the product was not on the shelf, and not because it wasn’t in the store but because it was in the back room and retail staff hasn’t stocked it.

Their product was absolutely flying off the shelf (a great problem to have) but the retailers couldn’t cope with the demand.

While the initial ask was to visit the retailers twice, we ended up having to visit three times with the third round being added at the last minute.

  • The average cost per product was $5.99.
  • The total investment was $21,000.00.
  • In total $108,000.00 of backroom stock was placed on the shelf and sold.

We would call that a success story.

It really highlights how important it is to have auxiliary resources in place and a plan that considers the best-case scenario, high sales, and the worst-case scenario, overwhelmed resources who are not ensuring that your product is on the shelf.

Worldwide, stockouts represent nearly USD 1 trillion in missed sales. And lost revenue is just one of the short-term impacts when your item isn’t on the shelf. Stockouts also frustrate customers and can damage your brand. If they can’t buy your item, they may choose a competitor and never come back.

Interestingly, in one survey, retailers said they were in stock for 92% of merchandise on average, whereas consumers said retailers were in stock of items they wanted to buy only 75% of the time.

According to another survey, more than three-quarters of shoppers expected stockouts leading up to the 2022 holiday shopping rush. On the other hand, more than half of retail executives said they were comfortable with their inventory.

Clearly, there is a disconnect here.

Brands looking to ensure their products are on the shelf will need to be proactive. That’s where we come in. Our national field force of over 500 employees is ready to help you get your products where they need to be.

Do you have a product that you promote heavily during the Easter season? Reach out to us for a free consultation. Call 1 877 421 5081 or visit our website today.

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