Retailers carrying a wide range of products face a wide range of shifting demand trends. The factors that influence what shoppers put in their carts – foods and beverages, personal care items, apparel and accessories, home goods, outdoor products – all vary daily and differently across store locations or markets. Planalytics’ predictive demand analytics for retail help businesses precisely measure and proactively manage the weather’s never-ending impact on operations and performance.
Day-to-day changes in the weather have a direct influence on the number of customer visits and the demand for specific products. Typically, retailers will find that sales will shift 3% to 5% throughout the year due to the weather, with even more sensitivity seen during certain times of the year and across different locations. At the product level, a retailer’s more weather-sensitive categories deal with great sales variability. Some examples: 33% (of annual sales) for fans, 11% for shorts, 15% for suncare products, 16% for pool toys, and 27% for electric blankets. (Note that the above examples are industry metrics. Planalytics also provides specific weather impact models based on retailer-specific sales data, locations, store types or channels, etc.)
Department stores, discounters, and other mass merchants can integrate predictive Weather-Driven Demand (WDD) analytics into existing processes and technology solutions to grow profit margins through increased sales and lower costs.
For planning and allocation and replenishment, WDD calculations allow retailers to better align regional or store inventories with projected weather-driven demand changes to take be in a position to capture sales opportunities and minimize inventory costs.
For digital marketing, WDD analytics help businesses personalize campaigns and more optimize marketing spend by targeting customers that are more likely to buy due to the weather.
For reporting & analysis, WDD metrics give retailers the ability to evaluate performance (such as regional sales, promotions, marketing campaigns, etc.) from a weather-adjusted viewpoint.
Retailers carrying a wide range of products face a wide range of shifting demand trends. The factors that influence what shoppers put in their carts – foods and beverages, personal care items, apparel and accessories, home goods, outdoor products – all vary daily and differently across store locations or markets. Planalytics’ predictive demand analytics for retail help businesses precisely measure and proactively manage the weather’s never-ending impact on operations and performance.
Day-to-day changes in the weather have a direct influence on the number of customer visits and the demand for specific products. Typically, retailers will find that sales will shift 3% to 5% throughout the year due to the weather, with even more sensitivity seen during certain times of the year and across different locations. At the product level, a retailer’s more weather-sensitive categories deal with great sales variability. Some examples: 33% (of annual sales) for fans, 11% for shorts, 15% for suncare products, 16% for pool toys, and 27% for electric blankets. (Note that the above examples are industry metrics. Planalytics also provides specific weather impact models based on retailer-specific sales data, locations, store types or channels, etc.)
Department stores, discounters, and other mass merchants can integrate predictive Weather-Driven Demand (WDD) analytics into existing processes and technology solutions to grow profit margins through increased sales and lower costs.
For planning and allocation and replenishment, WDD calculations allow retailers to better align regional or store inventories with projected weather-driven demand changes to take be in a position to capture sales opportunities and minimize inventory costs.
For digital marketing, WDD analytics help businesses personalize campaigns and more optimize marketing spend by targeting customers that are more likely to buy due to the weather.
For reporting & analysis, WDD metrics give retailers the ability to evaluate performance (such as regional sales, promotions, marketing campaigns, etc.) from a weather-adjusted viewpoint.
