Supply is the key to unlocking customer loyalty in Q4 2021
Distribution has been severely impacted by the pandemic, and the familiar patterns of supply have changed drastically. As a result, we are not just experiencing an increase in retail prices, but distributors are also selling at higher levels to their customers.
In Q1 2021, distributors exceeded sales expectations, but by Q2 2021 that resilience was starting to show signs of slowing down.
Between weeks 13 and 22 there was a gradual decline in product availability which drove up average selling prices to retailers and resellers by 32% globally.
The downward trend in supply from the beginning of the year indicates just how severe the pandemic-related disruptions are to supply chain management.
As the chart on the next page shows, the average number, the average number of selling items at distributors dropped 9% between week 13 and week 22.
By comparing our two Market Intelligence datasets of Sales Tracking and Supply Chain, we can confirm that during H1 2021 retailers and resellers stocked up on TCG items. The share of goods supplied by distributors intensified, as retailers increased their sources to ensure full shelves. This activity guarantees that consumers have the choice they want at retail. During this coming peak season, being able to offer a good selection of products and brands will ensure retailers meet consumers expectations. Retailers know only too well that where there’s no supply, consumers will simply shop around which inevitably has a negative impact on customer loyalty.
Now is the time to plan how to mitigate for this situation so you can keep your customers satisfied.
Availability is pivotal to success this peak season. With the Seasonal Peak Monitor you can track how readily your own and competitor products are available online and in-store.
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