Disruption to global supply chains caused by conflict in the Middle East is leading to more empty shelves and encouraging shoppers to switch retailers, according to new research from retail planning platform invent.ai.
A survey of more than 1,000 UK consumers found that, on average, 40 per cent of shoppers' planned grocery spend was unavailable due to products being out of stock. More than half (54%) said they had noticed poorer on-shelf availability since tensions in the Middle East escalated in February.
The study comes as disruption to key international shipping routes continues to affect the movement of goods, with invent.ai saying delays are impacting an estimated £92 billion worth of shipping assets.
Nearly seven in 10 respondents (69%) believed the grocery stock shortages they had experienced were directly linked to supply chain disruption caused by the conflict, while 73 per cent expected grocery stockouts to become more common if shipping disruption continues.
The research also found that 62 per cent of shoppers believe sanctions and trade restrictions are limiting access to certain goods, while almost half (49%) attributed product shortages to the effects of climate change.
Product availability remains a key priority for consumers, with 77 per cent expecting retailers to ensure essential everyday items remain in stock and 74 per cent wanting suitable alternatives when products are unavailable.
Failure to meet those expectations could damage retailer loyalty, the survey suggests. More than a quarter (27%) of shoppers said they question their loyalty to a supermarket when faced with empty shelves, rising to 46 per cent among Gen Z consumers and 39 per cent of Millennials. Meanwhile, 41 per cent said they would switch to another retailer if products were unavailable.
The research also highlighted the impact of stock shortages beyond grocery. Nearly three in 10 shoppers (29%) reported seeing shelf gaps when buying fashion in-store, while 23 per cent experienced out-of-stocks when shopping for clothing online.
Fashion shoppers appeared even less tolerant of stock shortages than grocery customers. Three in 10 said out-of-stocks reduced their loyalty to a brand, while the same proportion would buy from a competing retailer. More than four in 10 (42%) said they would turn to online marketplaces to find an alternative product, while 45 per cent would abandon their purchase altogether and search resale platforms such as Vinted, rising to 64 per cent among Millennials.
Lukas Fischer, sales director at invent.ai, said shoppers remained sympathetic to the wider supply chain challenges facing retailers but still expected products to be available.
“While shoppers understand – and in many cases are sympathetic to – the supply chain challenges retailers are facing at macro-level, their expectations remain unchanged: products need to be available at the right time, in the right place and through the channel they prefer,” he said.
“When items aren't available, shoppers won't hesitate to switch retailers, brands or channels.”
Fischer said retailers need to become more agile in managing inventory as supply chain disruption becomes a long-term challenge.
“In a trading environment where disruption and complexity are now the norm rather than the exception, retailers need to move beyond reactive inventory management and build greater agility, visibility and responsiveness into their planning processes to protect sales and strengthen long-term customer relationships.”