What is Out-of-Stock in Retail? Explained

Out-of-Stock occurs when a product is temporarily unavailable for purchase due to insufficient inventory. It indicates that the retailer has depleted its current supply, preventing immediate customer purchases. This situation can result from high demand, production delays, or inventory management issues. Retailers aim to minimize out-of-stock occurrences to prevent lost sales, customer dissatisfaction, and potential harm to their brand's reputation. Effective inventory management and supply chain strategies are crucial for mitigating the impact of out-of-stock situations in the retail sector.