Retailers risk losing more than 60% of their customers to competitors when items are out of stock, according to the AlixPartners 2024 Consumer Sentiment Index.
The survey of 9,000 fashion consumers reveals unmet inventory expectations can drive shoppers elsewhere, highlighting the importance of optimised inventory management this holiday season.
However, frustrations extend beyond stock issues. Sonia Lapinsky, Partner and Managing Director and Leader of Fashion Retail at AlixPartners, said: “Consumers may be shopping digital channels first, but they are back in stores and incredibly frustrated when pricing is inconsistent or they can’t find in-store what they saw online—they are tired of doing the work,”
“Retailers need to reallocate resources to what matters for consumers—nailing the seamless experience and getting the right product in the right place. It’s crucial for retailers to hit the mark this season, or consumers will take their dollars elsewhere.”
While much of the retail industry focuses on Gen Z, the study revealed that Millennials are the generation shaping the future of shopping. With increased spending power, Millennials’ preferences are driving change across product quality, pricing transparency, service, and overall experience. Retailers aiming to stay competitive will need to pay closer attention to this influential group.
Pricing inconsistency remains a major source of dissatisfaction, with 85% of consumers expecting uniform pricing across online and in-store channels. Dynamic pricing was widely disliked and viewed as unfair and confusing. Loyalty programmes also failed to resonate, with fewer than one-third of respondents finding them effective at strengthening their connection to a brand or encouraging repeat purchases.
The study also assessed how well retailers meet consumer expectations across nine fashion subcategories. In luxury, Chanel emerged as the leader, excelling in product quality, service, and overall experience. Nike continued to dominate athletic footwear, though emerging brands like Hoka are gaining traction with older consumers. Among young adult retailers, American Eagle earned top marks for its transparent and customer-focused approach.
Additional findings show a shift in consumer priorities. Add-on services such as recycling programmes and styling sessions were ranked among the least important factors, except in luxury and jewellery. Department store shoppers, on the other hand, prioritise fit, price alignment, and securing the best deal, with Macy’s, Kohl’s, and JCPenney identified as top performers in the segment.