By Gilles Paché
In today’s retail landscape, efficiency is not always the golden rule. Some of the largest large retailers have mastered the art of controlled chaos, using supply chain failures to stimulate demand and boost profits. In short, what if chaotic logistics was the key to marketing success? Gilles Paché sets out to explore how unpredictability exacerbates consumer desire, influences pricing strategies and gives companies a competitive edge.
Regularly reading the trade press and listening to Europe’s top executives makes it clear that logistics is a crucial factor in the success of the retail sector—whether offline, online, or both. A seamless supply chain, optimized inventory levels, and strict delivery management are generally considered essential for ensuring customer satisfaction, maximizing company profitability, and delivering strong returns to shareholders. In e-commerce, the quality of fulfillment operations is often highlighted as critical for building a sustainable competitive advantage [1]. However, this dominant view overlooks a far more complex reality: powerful large retailers are thriving despite logistics that, by conventional performance standards, would be deemed “chaotic.” Yet, rather than being a weakness, these inefficiencies appear to drive sales. This raises an intriguing question: could what is typically seen as logistical underperformance serve as a powerful lever for marketing success?
There is no doubt that this perspective on supply chain management is iconoclastic—perhaps even provocative. But is it really? On the contrary, three key insights highlight the relevance of a heterodox approach to logistics—thinking outside the box, as I explored in a recent book [2]. First, stockouts in-store or online, along with extended wait times, can unexpectedly enhance a product’s appeal and create a sense of desirable scarcity, increasing consumer demand. Second, chaotic logistics can foster an opportunistic and agile business model, prioritizing adaptability and responsiveness over rigid planning while reducing operational constraints. Third, what appears to be logistical inefficiency can serve as a strategic justification for pricing and assortment management policies that maximize a large retailer’s profitability and strengthen its market position. A closer and more nuanced analysis of these perspectives reveals their strategic significance.
Perceived Scarcity: Amplifying Demand
Traditionally, stockouts in-store or online are viewed as failures that harm a large retailer’s profitability. However, research suggests that, in certain contexts, product unavailability can have the opposite effect, as demonstrated by Barton et al.’s [3] meta-analysis. When a product becomes difficult to obtain, its scarcity enhances its perceived value. Faced with the possibility of missing out, consumers feel a heightened urgency to purchase, increasing the likelihood of a sale. This phenomenon aligns with scarcity theory, which posits that goods perceived as rare or difficult to access are often seen as more valuable [4]. Large retailers can strategically leverage this mechanism, turning a disruption into a powerful driver of desirability. By applying this approach, a large retailer can encourage customers to return frequently—whether to physical stores or online—fostering loyalty while generating sustained demand for products that are not always in stock.
On the other hand, companies like Brico Dépôt (home improvement and DIY), Costco (warehouse club and wholesale), and Action (non-food consumer goods) deliberately employ strategies that make their products temporarily inaccessible. These large retailers cultivate a “treasure hunt” experience, where consumers understand that if they do not act quickly, the product may soon be gone [5]. While this is not a new approach, it has become increasingly prevalent in sectors such as food, electronics, and fashion, where promotional items and exclusive products are often available in limited quantities. The scarcity of products on shelves—or the speed at which certain items sell out—compels customers to return frequently, ensuring they do not miss out on a deal. Rather than viewing stock discontinuity as a weakness, these businesses harness it as a strategic tool to attract shoppers, maintain steady foot traffic, and stimulate impulse purchases. Not only does this approach drive rapid inventory turnover, but it also fosters a sense of anticipation and excitement that strengthens brand loyalty.
Some companies take this approach even further, turning logistical constraints into strategic selling points. Announcing long wait times or limited quantities becomes an intentional marketing tool, leveraging consumer psychology. Shoppers, eager to acquire something rare or exclusive, often accept delays or less-than-ideal conditions if it means securing a coveted product. This phenomenon is particularly evident in luxury markets, where scarcity is not just a supply issue but a core branding strategy [6]. Hermès, with its highly sought-after Birkin bags, and Rolex, with long waiting lists for premium watches, deliberately cultivate exclusivity to heighten desirability. Even outside luxury, brands use similar tactics. Limited-edition sneakers from Nike or Adidas are released in small batches to generate hype, while electronics companies such as Sony and Nvidia leverage supply shortages to sustain demand for PlayStation consoles and graphics cards. The perception of rarity fuels anticipation, making products seem even more valuable and desirable.
A similar dynamic is at play with Aramisauto, a key player in the French car distribution market. Unlike traditional franchised dealerships, which maintain planned inventories and predictable delivery schedules, Aramisauto operates with an opportunistic sourcing model. The company buys vehicles in bulk whenever manufacturers like Renault or Stellantis need to offload unsold stock. As a result, its vehicle selection is constantly changing, with no guarantee that a specific model will be available at any given time. Delivery times also fluctuate significantly, ranging from a few days to several months, depending on the vehicle’s origin and logistical factors. However, this approach offers a significant advantage: by acquiring cars at deeply discounted prices, Aramisauto can sell new vehicles at prices up to 30% lower than traditional franchised dealerships. While the unpredictability may frustrate buyers seeking a specific model, the ever-changing inventory creates a sense of urgency, prompting quicker purchasing decisions.
Logistical Chaos and Marketing Agility
Large retailers that excel at accurately forecasting demand, optimally managing stock, and minimizing costs are often seen as “masters of logistics.” In contrast, a more “chaotic” approach enables some companies to respond better to unexpected challenges. Hard-discount companies like Aldi and Action exemplify the urgent need for organized logistical chaos. Rather than relying on rigid forecasts and constantly renewed stocks, they frequently adjust their offerings in response to market opportunities. This strategy allows them to secure highly competitive prices by negotiating exceptional deals with suppliers [7], without being constrained by long-term assortment planning. The fluctuating assortment also becomes a key asset in attracting consumers, as customers know they will not always find the same products with each visit, fostering a sense of excitement and anticipation. This dynamic keeps customers coming back, enhancing both engagement and sales potential.
This business model is based on a high level of responsiveness to buying opportunities, allowing these companies to offer a wide range of products while staying highly competitive. Logistical chaos, therefore, becomes a key advantage for hard-discount companies, which leverage it to quickly adapt to a constantly changing market. By replacing rigid planning with resilient flexibility, these companies optimize operating costs while minimizing waste. In addition, they benefit significantly by reducing fixed costs related to logistical facilities. Reactive inventory management minimizes the need for large warehouses or centralized platforms, instead favoring local supply systems like urban micro fulfillment centers [8]. This operating model not only enables them to stay agile in the face of market fluctuations but also allows them to rapidly adjust their offerings to shifting economic conditions, particularly during times of crisis or inflation. The adaptability of this approach supports long-term sustainability, even in uncertain times.
Moreover, this approach provides significant financial flexibility, which can be reinvested into other strategic areas, such as marketing or customer experience management. For instance, a large retailer adopting this logic can allocate additional resources to promotions, advertising campaigns, or enhancing store design. This strategy can be an effective means of retaining price-sensitive customers while simultaneously boosting foot traffic and increasing sales. Furthermore, the variability in product offerings creates a dynamic buying environment, where consumers are encouraged to return frequently, fearing they might miss out on valuable opportunities. Rather than focusing on occasional stockouts, these large retailers embrace controlled instability, a tactic that does not necessarily harm their overall performance. By leveraging more fluid and opportunistic logistics, they successfully combine competitiveness with adaptability to shifting consumer trends, ensuring sustainable profitability, and long-term growth in an unpredictable, rapidly evolving market.
This is particularly evident in the case of Action, founded in 1993 in the Netherlands, which has experienced significant growth across Europe in recent years, largely driven by its strategic pricing approach. The large retailer consistently offers nearly 1,500 items priced under one euro, covering a wide range of products, from household goods to office supplies. This pricing strategy encourages frequent store visits, as customers aim to take advantage of the deals, even at the expense of leaving the shelves in disarray. The product assortment is regularly updated, creating a sense of urgency that drives impulse purchases, as customers are aware that stock levels are limited, and high-demand items may sell out quickly. At the core of Action’s approach is this “bargain-hunting” dynamic, which ensures a steady flow of shoppers without the need for active management of stockouts. Conversely, when products are unavailable, customers often attribute the shortage to their own delay in arriving at the store.
Inefficient Logistics: A Winning Strategy
Instead of fighting against stockout situations in-store or online, large retailers have increasingly recognized that it makes strategic sense to integrate these occurrences as a key competitive lever. Rather than viewing stockouts as failures, they deliberately cultivate them to maintain an aura of scarcity around their products. By controlling supply and artificially extending delivery times, these companies create a sense of urgency and heightened consumer desire. This phenomenon is particularly effective in sectors where exclusivity, originality, and prestige are key values, such as luxury or limited-edition products. More surprisingly, logistical inefficiencies are also used strategically as leverage to justify price hikes, because when supply difficulties are cited, companies find it easier to convince their customers that price increases are unavoidable [9], as we witnessed during the Covid-19 pandemic and the ongoing war between Ukraine and Russia. This strategy successfully capitalizes on consumer behavior, leveraging scarcity to boost demand and sales.
Founded in France in 2011, Le Slip Français (“The French Brief”) exemplifies how intentionally creating logistical inefficiencies can become a powerful marketing strategy. Specializing in the production and physical distribution of high-quality, locally made underwear for men and women, the brand quickly set itself apart with its unique marketing approach. This includes releasing limited-edition collections, which generates a sense of urgency, encouraging customers to make purchases before items sell out. The company intentionally limits production and distribution, leveraging consumers’ desire for rare and exclusive products to build an emotional connection with its audience. Through its strategic scarcity, Le Slip Français creates an aspirational image of exclusivity and desirability. The brand has successfully turned the logistical challenges faced by its competitors into a strategic advantage. Far from diminishing the perceived value of its offer, these disruptions enhance it, creating anticipation and loyalty among its growing customer portfolio.
Large retailers adopting this innovative strategy are not only boosting their margins, but they are also shaping customers’ perceptions of the product assortment value. By maintaining a degree of opacity around the causes of stockouts, they transform a logistical constraint into a potent marketing argument. The temporary absence of an item heightens the desire to purchase it once it becomes available again, either in-store or online. Powerful large retailers take advantage of this dynamic to segment their customer base, offering programs that guarantee priority access to items in short supply. This enhances the feeling of exclusivity and strengthens the loyalty of regular buyers, especially when they are given timely updates after a stockout [10]. The phenomenon extends beyond luxury goods, as limited promotions and seasonal offers are based on similar principles. Therefore, far from being a mere logistical inconvenience, stockouts are increasingly becoming a powerful lever, influencing purchasing decisions and justifying higher prices.
Large retailers not only increase their margins but also shape customers’ perceptions of the value of their products. By maintaining a certain level of opacity around the causes of stockouts, they turn a logistical constraint into a powerful marketing tool. The temporary absence of an item heightens the desire to purchase it once it is back on the shelves, creating a sense of urgency that fosters impulse buying. This phenomenon was observed and studied in the context of panic buying after lockdowns were lifted during the Covid-19 pandemic [11]. Some large retailers capitalize on this dynamic to segment their customer base, offering priority access to high-demand products. This reinforces the sense of exclusivity, strengthening the loyalty of regular buyers and encouraging anticipatory behavior among occasional shoppers. The phenomenon extends beyond luxury items, as limited promotions and seasonal offers operate on similar principles. By deliberately orchestrating logistical chaos, large retailers create the illusion of controlled scarcity, which paradoxically drives increased consumption.
A Deeper Understanding of Contexts
There is no denying it: achieving a high level of logistical performance is generally considered to be an inescapable imperative in the retail industry, and this managerial doxa is taught to MBA students around the world. Yet some companies in the retail industry are succeeding by adopting a more innovative approach that defies this logic. Far from being systematically perceived as harmful, stockouts in shops or online create a scarcity effect that benefits demand. Similarly, chaotic logistics enhance commercial agility, reduce fixed costs, and encourage a more opportunistic approach to conquering new markets. Finally, apparent logistical inefficiency is sometimes used as a strategic lever to justify higher prices, generate in-store traffic, or stand out from the competition. This non-traditional approach has proven successful, even in rapidly shifting market conditions. In short, has not the time come for a serious rethink of the classic performance criteria in the retail industry?
Rather than striving for ultra-optimized logistics at all costs, powerful large retailers are capitalizing on a certain degree of disorder and unpredictability to maximize marketing impact. This approach, grounded in flexibility and responsiveness, offers significant advantages in a competitive environment where consumer expectations are rapidly shifting. While unpredictability may seem risky at times, it allows companies to stand out by providing a more memorable and unique shopping experience. Of course, this is not to say that logistical chaos is always the best choice—this business model is not suitable for every sector or company. It is essential to carefully define the specific contexts in which this approach is beneficial versus harmful [12]. Therefore, additional research is needed to better understand the conditions under which a successful balance between order and chaos can become a sustainable, long-term competitive strategy. Understanding these nuances will help businesses adapt to changing markets and continuously improve their approach.
About the Author
Gilles Paché is Professor of Marketing and Supply Chain Management at Aix-Marseille University, and Director of Research at the CERGAM Lab, in Aix-en-Provence, France. He has more than 650 publications in the forms of journal papers, books, edited books, edited proceedings, edited special issues, book chapters, conference papers and reports, including the recent two books: Variations sur la consommation et la distribution: Individus, expériences, systèmes (2022), and Heterodox logistics (2023).
References
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