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How do I remove the impact of weather from last year’s sales and create a better "baseline" for planning?
What effect will weather have on the shape and strength of my season?
Should I accelerate markdowns or will demand in coming weeks allow me clear inventory at higher margins?
THE BUSINESS PROBLEM
Retailers know all too well just how much weather affects consumer demand. Month after month, retailers point to the weather as a driving force behind both positive and negative variations in store traffic and sales. Weather causes people to change their plans with certain conditions making them much more likely to seek out or avoid certain activities, products, and services. Shoppers flock to stores to buy coats during a cold spell and they seek out sandals on sunny spring days. Conversely, shoppers are less likely to grab a can of soup on mild winter days and demand lags for barbeque or outdoor equipment on damp, rainy days.
For retailers, ignoring or ineffectively managing weather risk can result in bloated inventories and steep markdowns or stock outs and lost sales. Retailers that are unprepared for periods of favorable weather can miss opportunities to sell more seasonal merchandise at higher margins. But the ability to identify and manage weather’s impact requires more than a simple weather forecast. Retailers need product-specific, market-specific, and time-sensitive weather-driven demand intelligence that can be incorporated into planning, distribution, marketing, pricing and inventory management systems or decision making processes.
Planalytics Business Weather Intelligence offers solutions for retailers in the following areas:
In preparation for the upcoming season, Planalytics helps retailers deweatherize past sales and determine how to optimize the allocation of seasonal products across markets or individual store locations.
If it is sunny and warm in California, but raining and cold in Ohio—Does it make sense to advertise the same apparel in both locations? Consumers are quick to act based on current weather conditions. Successful retailers understand this, and execute properly.
Once your merchandise reaches the store, which products will sell faster than others? If needed, how will you decide which merchandise to markdown? Planalytics will help your company capitalize on critical business opportunities.
Planalytics can assist with validating your sales results and answer the following questions: Was it the weather that impacted my sales? How much of it was the weather? Which specific products were affected by the weather?