A customer looks for a specific size of a popular shoe and finds the shelf empty. That situation is a stockout. The product is unavailable for sale when demand exists.

Stockouts produce immediate lost sales and longer-term damage to loyalty. Causes include under-forecasting, supplier delays, theft, or poor replenishment execution. Retailers measure stockout rates and work to keep them low on high-priority items. Safety stock and better demand sensing are common remedies.

In omnichannel environments a store stockout may still be solved by shipping from another location or a distribution center. Communication to the customer about alternatives or restock dates can salvage the experience. Preventing stockouts on key items remains one of the highest-return operational goals.

• Situation in which demanded product is unavailable
• Causes lost sales and customer frustration
• Results from forecasting, supply, or process failures
• Measured and actively minimized by retailers