twelfth · Glossary · Stock and supply
Stockout
Also called out of stock, OOS
A stockout is when a product a shopper wants is not available to buy, whether on the shelf, in the warehouse or online.
What it means for retail and category teams
Stockouts include the obvious empty shelf and less visible cases: stock in the back room but not on the shelf, stock the system shows that is not really there, or an online listing marked unavailable. Retailers track them through availability measures and through lines showing zero sales where demand would normally be expected.
Why it matters
The cost is more than the missed sale. Some shoppers switch to another line, some go to a competitor, and some change where they shop. Stockouts also corrupt the sales history: a line that sold nothing while unavailable looks like a line nobody wants, and that flows into forecasts and range reviews unless it is corrected.
Illustrative example
The business and figures are illustrative, not customer data
A popular line is unavailable for much of a week. Sales data alone makes demand look weak, so the team marks the gap before using that week to forecast future demand.
Related terms
Related on twelfth.ai
- twelfth for merchandise planners
Continuous demand, cover and flow monitoring that shows where the buy plan and the actual trade have come apart.