Shelf Monitoring

How Are CPGs Addressing In-Store Product Availability Challenges in 2025

Ankit Singh
April 7, 2025
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With over 72% of CPG sales continuing to occur in brick-and-mortar stores, physical shopping remains a cornerstone of the retail experience. While online shopping offers convenience, millions of customers still prefer the in-store experience—browsing products, feeling the quality, and making their purchases on-site. Despite the rise of e-commerce, CPGs are realizing that in-person shopping will continue to play a vital role in product availability in 2025.

In this environment, ensuring in-store availability is crucial. From 2013 to 2023, total in-store retail sales dollars increased by 51.4%, highlighting the continued importance of maintaining product stock in physical stores.

As consumer expectations evolve and supply chain challenges persist, getting product availability right has never been more vital for CPGs. Ensuring that your products are always available and in stock when customers need them can directly influence customer satisfaction, brand loyalty, and, ultimately, your bottom line.

In this article, we’ll explore how CPG brands are tackling in-store availability challenges in 2025 through technology, supply chain innovation, and data-driven strategies. Read on to learn how these solutions ensure your products are always available when customers need them.

‍

What is In-Store Availability and its Challenges?

Imagine a consumer walking into the store, ready to purchase a product they’ve been eyeing for weeks, only to find that it’s out of stock. This scenario highlights a critical issue for CPG brands: in-store availability. 

In simple terms, in-store availability refers to the ability of a CPG brand's products to be present on store shelves when consumers are looking for them. Ensuring in-store availability is crucial for CPG brands to drive sales, maintain customer loyalty, and build brand strength.

However, achieving reliable in-store availability is no easy task for CPG brands, and they face several significant challenges:

  • Inventory Management Issues: Many CPG brands struggle to ensure they have the right stock in place. Overstocking can lead to higher operational costs and wastage, while understocking results in missed sales opportunities, diminishing customer satisfaction, and harming long-term brand loyalty.
  • Unpredictable Demand Shifts: CPG brands often face difficulty in forecasting demand due to seasonality, changes in consumer behavior, or sudden market shifts. These unpredictable patterns create challenges in maintaining accurate stock levels across multiple locations, leading to stockouts or overstocking.
  • Supply Chain Complexities: The complex and sometimes fragmented nature of supply chains presents challenges for CPG brands in managing inventory. Delays in production, transportation, or other disruptions can prevent timely restocking, leading to empty shelves and missed sales.
  • Lack of Real-Time Inventory Tracking: Without real-time visibility into inventory levels, CPG brands may struggle to make quick, informed decisions about restocking or reallocating products across stores. Without this timely data, CPGs risk running out of stock at the very moment consumer demand peaks.

The consequences of poor in-store availability go beyond empty shelves. When customers can’t find the products they want, their shopping experience suffers, leading to dissatisfaction and weakened loyalty. Research shows that frequent stockouts can directly reduce customer satisfaction, cause consumers to turn to competitors, and erode long-term brand loyalty.

Next, we’ll explore the technological advancements that are helping CPGs tackle these challenges more effectively.

‍

6 Methods for CPGs to Overcome In-Store Availability Challenges

Let’s examine how CPGs are navigating these challenges using a combination of cutting-edge technology and forward-thinking supply chain models.

‍

1. Technological Advancements Reshaping In-Store Availability

In 2025, technological innovations are revolutionizing in-store availability. CPG brands are embracing AI, real-time inventory tracking, and blockchain to keep products on shelves and meet customer demand. Here’s how these advancements are making a significant impact:

AI and Machine Learning: Instant SKU Recognition via Image Recognition Technology

Gone are the days of relying on gut feelings or guesswork for on-shelf inventory planning. With AI and machine learning, CPGs are taking their ability to predict product availability on the shelf to a whole new level. Vast amounts of in-store shelf images captured by cameras are being analyzed. AI is helping brands accurately anticipate when products go out of stock, how they are placed on the shelves, and what customers see.

This means CPGs can restock items precisely when they’re needed based on on-shelf availability, cutting down on stockouts and keeping their shelves full when customers come looking for products. 

Real-Time Inventory Tracking: The IoT Revolution

What’s better than anticipating demand? Knowing what’s on your shelves right now. 

With IoT devices like RFID sensors and smart cameras, CPGs have a much clearer picture of their inventory at any given moment. These tools provide real-time alerts when stock levels dip, or products are misplaced, empowering store teams to take immediate action and keep shelves stocked.

Consider ParallelDots’ ShelfWatch, which improves the on-shelf availability of product assortment through image recognition. The platform ensures that top-selling SKUs are always present on the shelf in each category. This proactive approach helps CPG brands maintain product visibility and availability, preventing stockouts and optimizing in-store execution.

Also read: The AI Breakthrough in Retail Shelf Intelligence for CPG Brands.

‍

2. Data-Driven Decisions: Using Analytics to Optimize Availability

When it comes to managing in-store availability, data is king. Harnessing big data allows CPGs to gain invaluable insights into consumer buying patterns and market trends. These insights help optimize stock levels and predict which products will experience high demand.

Point-of-sale (POS) data, in particular, provides real-time information about sales performance. By analyzing this data, CPGs can make dynamic adjustments to inventory, ensuring that popular products are always available. Additionally, predictive analytics allows brands to anticipate future demand more accurately, reducing the risk of both overstocking and stockouts.

‍

3. Collaboration with Retail Partners

No CPG brand can manage in-store availability alone. Strong collaboration with retail partners is required to ensure products are consistently in stock. Strategic partnerships enable brands and retailers to share valuable insights about consumer trends and sales data, which helps both parties adjust to demand more efficiently.

By co-creating in-store experiences, such as customized shelf arrangements and promotional displays, CPGs and retailers can enhance product visibility and maintain availability. Additionally, joint decision-making, especially during demand fluctuations, allows for quicker responses to market changes, keeping shelves stocked with the right products.

‍

4. Consumer Engagement Strategies to Enhance Availability

Keeping customers informed about product availability is vital for maintaining trust and loyalty. CPGs are increasingly using digital tools to engage with consumers and enhance perceptions of availability.

  • Using Mobile Apps and Digital Platforms for Stock Updates: CPGs are providing real-time stock updates through mobile apps and digital platforms, helping customers make informed decisions and ensuring they don't miss out on their favorite products.
  • Incorporating Feedback Loops to Address Availability Perceptions: CPGs can actively seek customer feedback to understand how customers perceive product availability. This feedback helps brands make adjustments and align their offerings with customer expectations, improving satisfaction.
  • Enhancing Loyalty Programs to Manage Stockouts: To manage stockouts proactively, CPGs are integrating loyalty programs that offer rewards or incentives to customers affected by availability issues. This helps brands retain loyal customers even when stock levels are low, ensuring customer retention despite occasional shortages.

These consumer engagement strategies help CPGs maintain strong relationships with their customers, even during product shortages. 

‍

5. Sustainability and Ethical Sourcing

Finally, as CPGs focus on improving in-store availability, they must also prioritize sustainability and ethical sourcing. Many brands are now adopting eco-friendly logistics solutions, reducing waste, and optimizing transportation routes. Ensuring that products are ethically sourced without compromising availability is becoming a priority.

By aligning their supply chains with sustainability goals, CPGs are not only meeting consumer demand but also contributing to a more responsible, eco-conscious future.

‍

How Can ParallelDots Help CPGs in Addressing In-Store Product Availability Challenges?

Maintaining optimal in-store availability is a persistent challenge for CPG brands, often leading to stockouts, misplaced products, and non-compliance with merchandising guidelines. Here's how ParallelDots' ShelfWatch addresses these challenges:

1. Real-Time On-Shelf Availability Monitoring: ShelfWatch uses AI-driven image analysis and deep learning to provide near real-time KPI feedback on product stock levels and shelf conditions. These insights are instantly transferred to the ShelfWatch cloud, allowing CPGs to detect stockouts, misplaced SKUs, and compliance issues with speed and accuracy.

2. Planogram Compliance and Shelf Execution: By analyzing shelf images, ParallelDots ensures that products are displayed according to planogram guidelines, reducing improper placements that can lead to stockouts or poor visibility. The system also tracks a brand's shelf presence relative to competitors, helping optimize positioning for high-demand items.

3. Strategic Shelf Space Utilization: ParallelDots helps CPGs maximize high-visibility areas, such as end caps and gondolas, to keep fast-moving products stocked where they are most likely to drive sales.

With the strategic use of these AI-powered insights, CPG brands can proactively manage in-store availability and overall execution. ParallelDots' solutions empower brands to make data-backed decisions that keep shelves stocked and customers satisfied.

Also read: Realtime Retail Analytics for Improved Retail Execution

‍

Conclusion

In 2025, the ability to ensure consistent in-store availability is more crucial than ever for CPG brands. By adopting agile supply chain models, collaborating with retail partners, and utilizing data-driven insights, CPGs are meeting the ever-growing demand for availability in a rapidly evolving retail landscape.

CPGs need to integrate the right tools and solutions to stay ahead and achieve flawless in-store availability. ParallelDots offers a suite of AI-driven technologies designed to ensure on-shelf inventory and provide real-time insights, ensuring products are always available when customers need them. 

Schedule a call with ParallelDots today and discover how our AI-powered tools can help you optimize your product availability strategy for 2025 and beyond!

‍

With over 72% of CPG sales continuing to occur in brick-and-mortar stores, physical shopping remains a cornerstone of the retail experience. While online shopping offers convenience, millions of customers still prefer the in-store experience—browsing products, feeling the quality, and making their purchases on-site. Despite the rise of e-commerce, CPGs are realizing that in-person shopping will continue to play a vital role in product availability in 2025.

In this environment, ensuring in-store availability is crucial. From 2013 to 2023, total in-store retail sales dollars increased by 51.4%, highlighting the continued importance of maintaining product stock in physical stores.

As consumer expectations evolve and supply chain challenges persist, getting product availability right has never been more vital for CPGs. Ensuring that your products are always available and in stock when customers need them can directly influence customer satisfaction, brand loyalty, and, ultimately, your bottom line.

In this article, we’ll explore how CPG brands are tackling in-store availability challenges in 2025 through technology, supply chain innovation, and data-driven strategies. Read on to learn how these solutions ensure your products are always available when customers need them.

‍

What is In-Store Availability and its Challenges?

Imagine a consumer walking into the store, ready to purchase a product they’ve been eyeing for weeks, only to find that it’s out of stock. This scenario highlights a critical issue for CPG brands: in-store availability. 

In simple terms, in-store availability refers to the ability of a CPG brand's products to be present on store shelves when consumers are looking for them. Ensuring in-store availability is crucial for CPG brands to drive sales, maintain customer loyalty, and build brand strength.

However, achieving reliable in-store availability is no easy task for CPG brands, and they face several significant challenges:

  • Inventory Management Issues: Many CPG brands struggle to ensure they have the right stock in place. Overstocking can lead to higher operational costs and wastage, while understocking results in missed sales opportunities, diminishing customer satisfaction, and harming long-term brand loyalty.
  • Unpredictable Demand Shifts: CPG brands often face difficulty in forecasting demand due to seasonality, changes in consumer behavior, or sudden market shifts. These unpredictable patterns create challenges in maintaining accurate stock levels across multiple locations, leading to stockouts or overstocking.
  • Supply Chain Complexities: The complex and sometimes fragmented nature of supply chains presents challenges for CPG brands in managing inventory. Delays in production, transportation, or other disruptions can prevent timely restocking, leading to empty shelves and missed sales.
  • Lack of Real-Time Inventory Tracking: Without real-time visibility into inventory levels, CPG brands may struggle to make quick, informed decisions about restocking or reallocating products across stores. Without this timely data, CPGs risk running out of stock at the very moment consumer demand peaks.

The consequences of poor in-store availability go beyond empty shelves. When customers can’t find the products they want, their shopping experience suffers, leading to dissatisfaction and weakened loyalty. Research shows that frequent stockouts can directly reduce customer satisfaction, cause consumers to turn to competitors, and erode long-term brand loyalty.

Next, we’ll explore the technological advancements that are helping CPGs tackle these challenges more effectively.

‍

6 Methods for CPGs to Overcome In-Store Availability Challenges

Let’s examine how CPGs are navigating these challenges using a combination of cutting-edge technology and forward-thinking supply chain models.

‍

1. Technological Advancements Reshaping In-Store Availability

In 2025, technological innovations are revolutionizing in-store availability. CPG brands are embracing AI, real-time inventory tracking, and blockchain to keep products on shelves and meet customer demand. Here’s how these advancements are making a significant impact:

AI and Machine Learning: Instant SKU Recognition via Image Recognition Technology

Gone are the days of relying on gut feelings or guesswork for on-shelf inventory planning. With AI and machine learning, CPGs are taking their ability to predict product availability on the shelf to a whole new level. Vast amounts of in-store shelf images captured by cameras are being analyzed. AI is helping brands accurately anticipate when products go out of stock, how they are placed on the shelves, and what customers see.

This means CPGs can restock items precisely when they’re needed based on on-shelf availability, cutting down on stockouts and keeping their shelves full when customers come looking for products. 

Real-Time Inventory Tracking: The IoT Revolution

What’s better than anticipating demand? Knowing what’s on your shelves right now. 

With IoT devices like RFID sensors and smart cameras, CPGs have a much clearer picture of their inventory at any given moment. These tools provide real-time alerts when stock levels dip, or products are misplaced, empowering store teams to take immediate action and keep shelves stocked.

Consider ParallelDots’ ShelfWatch, which improves the on-shelf availability of product assortment through image recognition. The platform ensures that top-selling SKUs are always present on the shelf in each category. This proactive approach helps CPG brands maintain product visibility and availability, preventing stockouts and optimizing in-store execution.

Also read: The AI Breakthrough in Retail Shelf Intelligence for CPG Brands.

‍

2. Data-Driven Decisions: Using Analytics to Optimize Availability

When it comes to managing in-store availability, data is king. Harnessing big data allows CPGs to gain invaluable insights into consumer buying patterns and market trends. These insights help optimize stock levels and predict which products will experience high demand.

Point-of-sale (POS) data, in particular, provides real-time information about sales performance. By analyzing this data, CPGs can make dynamic adjustments to inventory, ensuring that popular products are always available. Additionally, predictive analytics allows brands to anticipate future demand more accurately, reducing the risk of both overstocking and stockouts.

‍

3. Collaboration with Retail Partners

No CPG brand can manage in-store availability alone. Strong collaboration with retail partners is required to ensure products are consistently in stock. Strategic partnerships enable brands and retailers to share valuable insights about consumer trends and sales data, which helps both parties adjust to demand more efficiently.

By co-creating in-store experiences, such as customized shelf arrangements and promotional displays, CPGs and retailers can enhance product visibility and maintain availability. Additionally, joint decision-making, especially during demand fluctuations, allows for quicker responses to market changes, keeping shelves stocked with the right products.

‍

4. Consumer Engagement Strategies to Enhance Availability

Keeping customers informed about product availability is vital for maintaining trust and loyalty. CPGs are increasingly using digital tools to engage with consumers and enhance perceptions of availability.

  • Using Mobile Apps and Digital Platforms for Stock Updates: CPGs are providing real-time stock updates through mobile apps and digital platforms, helping customers make informed decisions and ensuring they don't miss out on their favorite products.
  • Incorporating Feedback Loops to Address Availability Perceptions: CPGs can actively seek customer feedback to understand how customers perceive product availability. This feedback helps brands make adjustments and align their offerings with customer expectations, improving satisfaction.
  • Enhancing Loyalty Programs to Manage Stockouts: To manage stockouts proactively, CPGs are integrating loyalty programs that offer rewards or incentives to customers affected by availability issues. This helps brands retain loyal customers even when stock levels are low, ensuring customer retention despite occasional shortages.

These consumer engagement strategies help CPGs maintain strong relationships with their customers, even during product shortages. 

‍

5. Sustainability and Ethical Sourcing

Finally, as CPGs focus on improving in-store availability, they must also prioritize sustainability and ethical sourcing. Many brands are now adopting eco-friendly logistics solutions, reducing waste, and optimizing transportation routes. Ensuring that products are ethically sourced without compromising availability is becoming a priority.

By aligning their supply chains with sustainability goals, CPGs are not only meeting consumer demand but also contributing to a more responsible, eco-conscious future.

‍

How Can ParallelDots Help CPGs in Addressing In-Store Product Availability Challenges?

Maintaining optimal in-store availability is a persistent challenge for CPG brands, often leading to stockouts, misplaced products, and non-compliance with merchandising guidelines. Here's how ParallelDots' ShelfWatch addresses these challenges:

1. Real-Time On-Shelf Availability Monitoring: ShelfWatch uses AI-driven image analysis and deep learning to provide near real-time KPI feedback on product stock levels and shelf conditions. These insights are instantly transferred to the ShelfWatch cloud, allowing CPGs to detect stockouts, misplaced SKUs, and compliance issues with speed and accuracy.

2. Planogram Compliance and Shelf Execution: By analyzing shelf images, ParallelDots ensures that products are displayed according to planogram guidelines, reducing improper placements that can lead to stockouts or poor visibility. The system also tracks a brand's shelf presence relative to competitors, helping optimize positioning for high-demand items.

3. Strategic Shelf Space Utilization: ParallelDots helps CPGs maximize high-visibility areas, such as end caps and gondolas, to keep fast-moving products stocked where they are most likely to drive sales.

With the strategic use of these AI-powered insights, CPG brands can proactively manage in-store availability and overall execution. ParallelDots' solutions empower brands to make data-backed decisions that keep shelves stocked and customers satisfied.

Also read: Realtime Retail Analytics for Improved Retail Execution

‍

Conclusion

In 2025, the ability to ensure consistent in-store availability is more crucial than ever for CPG brands. By adopting agile supply chain models, collaborating with retail partners, and utilizing data-driven insights, CPGs are meeting the ever-growing demand for availability in a rapidly evolving retail landscape.

CPGs need to integrate the right tools and solutions to stay ahead and achieve flawless in-store availability. ParallelDots offers a suite of AI-driven technologies designed to ensure on-shelf inventory and provide real-time insights, ensuring products are always available when customers need them. 

Schedule a call with ParallelDots today and discover how our AI-powered tools can help you optimize your product availability strategy for 2025 and beyond!

‍

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