top of page
Leakage
Definition
The amount of category or brand spending by a retailer’s shoppers that occurs outside of that retailer, indicating lost sales to competitors. Leakage measures how much potential revenue is not captured within a given retail banner.
Leakage may also be used more broadly to describe lost sales due to execution gaps, though it is most commonly used in shopper and retailer analysis.
How It's Calculated
Example
A grocery chain finds that its shoppers spend $5 million annually on snacks at competing retailers, identifying this amount as leakage and an opportunity to improve assortment and promotions.
Can't find what you're looking for? Suggest a term.
bottom of page