The stockouts study: an examination of the extent and the causes in the São Paulo supermarket sector

Abstract

Stockouts remain a significant retail problem. Progress has been limited, as estimates of stockout rates in the past forty years have consistently averaged above 8 percent. The purpose of this study is to investigate the importance and extent of the stockout problem in the supermarket sector in the state of São Paulo, Brazil, from the perspective of the supermarket managers themselves. Results suggest that the level of stockouts is high. Generally, the suppliers are mentioned as being the ones mainly responsible for stockouts. These results suggest that managers have significant opportunities to reduce retail stockouts by taking preventative actions.