Welcome!

Containers Expo Blog Authors: Liz McMillan, Stefan Dietrich, Pat Romanski, Elizabeth White, Robert Reeves

News Feed Item

UK Retailers in Christmas Gamble as Stock-Outs Could Cost 1.87bn pounds Sterling in Lost Opportunities This Christmas

New Research from CEBR Sponsored by NetSuite Reveals That Limited Supply and Poor Demand Planning is Driving Out-of-Stock Situations for Retailers in Vital Christmas Period

LONDON, Dec. 12, 2012 /PRNewswire/ -- A research report sponsored by NetSuite Inc. (NYSE: N), the industry's leading vendor of cloud-based financials / ERP software suites, today reveals that UK retailers could lose an estimated £147 million of revenue this Christmas due to missed sales opportunities through out-of-stock products, and an additional £1.7 billion to their competitors, as consumers shop elsewhere for their Christmas gifts. The research is based on economic models provided by the Centre for Economics and Business Research (CEBR) and primary research with UK retail businesses, and a nationally representative study of 2,000 UK consumers conducted by Vanson Bourne. The findings are available for free download as part of NetSuite's latest retail report The Christmas Gamble at www.thechristmasgamble.co.uk.

The research found that the average retailer is losing 10 percent of its Christmas revenue to out-of-stock situations:

  • More than half of retailers surveyed (66 percent) were out-of-stock of particular products last Christmas, with clothing (52 percent), food and drink (44 percent) and electrical goods (44 percent) most commonly out-of-stock. With 41 percent of consumers surveyed stating that they plan to go to a competing website or retailer to get the Christmas gift they want, retailers are set to lose as much as £1.7 billion to competitors this Christmas.
  • On average, these retailers could not fulfill 21 percent of Christmas orders last Christmas due to a lack of product availability – leading to a potential overall revenue loss of £147 million through missed sales opportunities.

A truly multi-channel Christmas, but online product availability hampers retailers' revenues

UK consumers are now looking for a true, multi-channel experience this Christmas season, with the average consumer conducting 43 percent of their shopping in-store and 57 percent online. Shopping via mobile devices can play a key role in driving sales this festive season; almost 20 percent of consumers say they plan to shop through a mobile device this Christmas, and almost one in 10 of consumers under 35 said that their mobile device is their primary shopping tool. A quarter of consumers also plan to spend more on their Christmas shopping this year, with 68 percent expecting to spend more online compared to in-store. 

Andy Lloyd, General Manager of Commerce Products for NetSuite said: "Delivering an omnichannel retail experience is a key challenge for retailers as consumer shopping habits continue to shift, both in-store and online. Stock-outs in particular cost more than lost revenue; they can tarnish a brand, especially over the highly emotionally charged festive season. Retailers need to take steps to avoid stock-outs wherever possible, and ensure their commerce systems allow them to quickly recover from misallocated inventory by helping customers to purchase products from alternate store locations or channels, such as eCommerce, when the store is out of stock."

The causes of stock-outs

When exploring reasons for stock-outs over the Christmas period, 52 percent of retailers surveyed put this down to inaccurate demand planning; 42 percent said that they did not have the right products available in the right place (online or in-store) at the right time; while 34 percent said that they lacked a holistic view of the business. In preparation for this Christmas:

  • Almost 20 percent of retailers have not ordered additional stock ahead of Christmas.
  • 10 percent of these retailers claim financial constraints to be the cause of lack of stock.
  • Over half of retailers have ordered additional stock across their entire product range.
  • 30 percent of these retailers have ordered additional stock across items that were popular last Christmas.

Andy Lloyd continued: "While it's great to see that a large proportion of retailers are prepared for Christmas this year, our research shows that many of the reasons behind out-of-stock products comes down to factors which are within retailers' control, with inaccurate demand planning affecting more than half of retailers alone."

"The figures from the CEBR demonstrate the cost of taking a gamble this Christmas when it comes to demand planning. To remain competitive, retailers must invest in their systems and processes to ensure that they have full business information transparency, greater customer insight and better demand planning capabilities. Being able to tightly align sales forecasts with inventory replenishment plans can eliminate stock-outs, improve customer satisfaction, whilst ultimately ensuring a retailer can remain competitive during such an important shopping period."

Colin Edwards, economist at CEBR, added: "The Christmas period represents the most lucrative revenue opportunity of the year for retailers, comprising one fifth of annual revenues on average.  This means at this time of year it is more important than ever for retailers to manage their stock levels effectively, allowing them to successfully compete with their peers and capitalise on the potential revenues offered by Christmas."

NetSuite's SuiteCommerce platform is a new commerce-aware platform that provides a central system to manage all transactions and associated interactions with consumers and other businesses over multiple touchpoints (website, tablet, smart phone, social media site, in-store, etc.). SuiteCommerce delivers Commerce as a Service, which is a presentation independent, globally accessible capability supporting transactional channels, and providing sophisticated demand-planning and supply chain management capabilities. For more information, please click here

About the research

The research is based on economic models provided by the Centre for Economics and Business Research (CEBR) and primary research with 100 IT decision makers at UK retail businesses, as well a nationally representative study of 2,000 UK consumers conducted by Vanson Bourne. The findings are available for free download as part of NetSuite's latest retail report The Christmas Gamble at www.thechristmasgamble.co.uk.

About Vanson Bourne:

Vanson Bourne is a specialist research-led consultancy carrying out user research within a technology context. Vanson Bourne's clients range from start-ups to well-known companies that need expert guidance, delivering robust and credible research-based analysis.

About NetSuite

Today, more than 12,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud ERP suites for divisions of large enterprises and mid-sized organizations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations, as demonstrated by a recent Gartner study naming NetSuite as the fastest growing top 10 financial management systems vendor in the world. NetSuite has continued its success in delivering the best cloud ERP/financial suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud is accelerating.

Follow NetSuite's Cloud blog, NetSuite's Facebook page and @NetSuiteEMEA Twitter handle for real-time updates.

For more information about NetSuite, please visit www.netsuite.co.uk.

NOTE: NetSuite and the NetSuite logo are service marks of NetSuite Inc.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements relating to expectations, plans, and prospects including expectations relating to the future growth of the retail and mobile commerce markets. These forward-looking statements are based upon the current expectations and beliefs of NetSuite's management as of the date of this release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements including, without limitation, the risk of continued adverse and unpredictable macro-economic conditions. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.

(Logo: http://photos.prnewswire.com/prnh/20090924/SF81218LOGO-b)

SOURCE NetSuite Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
The paradigm has shifted. A Gartner survey shows that 43% of organizations are using or plan to implement the Internet of Things in 2016. However, not just a handful of companies are still using the old-style ad-hoc trial-and-error ways, unaware of the critical barriers, paint points, traps, and hidden roadblocks. How can you become a winner? In his session at @ThingsExpo, Tony Shan will present a methodical approach to guide the holistic adoption and enablement of IoT implementations. This ov...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...