Are retailers sending customers back empty handed?

Are retailers sending you back home empty handed telling you to check for your item online? Yes, according to come Wharton faculty and industry analysts, retailers have reduced the amount of stock they have in stores, cutting back on certain colors and sizes. Consumers are also being told about the special sales retailers are having online, where they can order low-selling merchandise and have it delivered directly to their homes.

Retailers have always feared operational problems leading to stockouts (items and/or sizes that are out of stock) and lost sales. Now, stores are generating intentional stockouts because they have the opportunity to capture lost sales through the Internet. "Slow-moving items can be efficiently sold using the web site, but not the stores. So when the customer comes into the store and wants an item that is a slow-seller, he or she can get redirected," says Gérard Cachon, Wharton professor of operations and information management.

Read the article here at Knowledge @ Wharton.