Retailers Fear Holiday Stock Shortages

Retailers face a host of issues as they enter their most critical time of the year. Concerns include supply chain shocks, inventory management, frontline worker morale and missed opportunities for tech innovations. 

A new analysis, Accenture’s Holiday Shopping Surveys, found that 70% of U.S. retail executives are worried that potential supply chain shocks could impact their ability to deliver against their holiday trading plan.

Delivering on-time orders is a concern for 70% of those surveyed. And 64% are worried they won’t have enough stock this holiday season.

Another pressure is meeting expectations to deliver a seamless and consistent experience across all touchpoints. With shoppers switching between apps, websites, and stores to compare products and prices, the promise to meet expectations is faltering.

More than eight in 10 (82%) of frontline workers say items listed as “in stock” online are often unavailable in-store, and 73% report frequent price mismatches. These disconnects risk frustrating customers and eroding trust at the peak of the shopping season, the survey notes.

“Success this holiday season is about having precise stock every hour, at each point of sale, which requires a pull-based supply chain sensing change as it happens and quickly following demand in near real time, creating seamless experiences for their customers,” said Adheer Bahulkar, Accenture’s global Supply Chain lead for Consumer Industries, in a statement.

“The winners have turned agility into a year-round capability, relying on data and AI-enabled autonomous systems to anticipate demand, manage disruptions, continuously refine inventory flows, and delight shoppers, all at the speed of the market,” Bahulkar added.

Issues with Customer Relations

The survey looked at what frontline employees are facing. The following are their concerns: 

• 57% of frontline retail workers say inventory and availability issues top the list of areas that take up most of their time.
• 25% report that internal systems for inventory management and stock lookup slow them down, second only to price checks and promotion handling (31%).
• 30% of workers say that managing complaints about a lack of stock or substitutes causes them the most stress during the holiday season.
• 33% say that system and process improvements to provide clearer, real‑time updates on inventory levels would make their job easier.
• 32% report that they don’t have access to digital inventory management systems or real-time tools, despite almost all (99%) seeing the value of such tools. 

“Frontline retail workers are the backbone of the holiday shopping experience, keeping stores running smoothly even under intense pressure. But when stores get busy and stress levels rise, the disappointment of out-of-stocks can make the shopping experience fall flat,” said Brooks Kitchel, Accenture’s global retail strategy lead, in a statement.

 “AI and digital tools have the potential to boost productivity and make frontline roles more rewarding. While AI feels intuitive in our personal lives, bringing it into stores requires serious behind-the-scenes work to upgrade systems, rethink processes, and train teams. But with the right tech and skills, retailers can unlock real impact for their business and their people,” adds Kitchel.<

Using Generative AI 

The survey found that 77% of consumers say they plan to use gen AI for assistance with holiday shopping.

Frontline workers also see value in gen AI and 67% believe that it would make their jobs easier, with 90% saying it would be valuable by answering questions or checking stock. Additionally, 38% find it easier to assist customers who use AI tools. 

However, only 5% of US retailers expect to be fully optimized for gen AI-driven customer interactions by 2025.  Part of this is that around 70% of frontline workers have access to only basic digital tools like scheduling systems and inventory management apps.  

Furthermore 75% don't have access to advanced tech like gen AI-powered assistants or shelf-scanning technologies. 

However, nearly half of retail executives say gen AI is one of the most influential trends this season and are now creating differentiated tools. They’re also thinking about agentic commerce. Solutions such as ChatGPT’s “BuyNow” option will weaken their influence over shopper journeys, but differentiated brand-owned tools can strengthen shopper connections.