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Using Predictive Weather-Driven Demand Analytics to Improve On-Shelf Availability

NielsenIQ published an analysis (Fresh Insights About Grocery On-Shelf Availability in the Post-COVID Era) pointing to the importance to the challenge of out-of-stocks for retailers.

NielsenIQ, a Planalytics partner, wrote that “Gaps in On-Shelf Availability (OSA) result in lost volume, lost baskets, and lost faith among shoppers…  Even where upstream supply shortages and/or panic shopping are root causes, there are steps that can be taken to ensure better on-shelf availability (OSA). It begins with a true read of trending demand – not just in your own stores, but also at the market level.”

Product availability was also cited as a top concern for shoppers by the FMI (The Food Industry Association) in partnership with the Hartman Group in their 2022 U.S. Grocery Shopper Trends Series, noting that a survey of shoppers indicated that “… 45% are concerned about out-of-stocks.”

Planalytics’ work with major grocers over the years has shown that adjusting demand forecasts and in-store replenishment for changes in the weather can significantly improve availability and add up to 200 basis points back to toplines by reducing lost sales.

GroceryDive explored how predictive weather-driven demand analytics can benefit retailers in the following article:  Analyze this everyday driver of demand to improve availability.

The article highlighted that “…the weather affects consumers and their purchasing decisions on a daily basis; no other external variable shifts store-level sales trends as immediately, frequently, and meaningfully… Weather analytics help store managers, category managers, and/or replenishment systems better align inventories with expected demand trends, rather than restocking stores based on recent or historical sales levels.”

US maps depicting different replenishment quantities in different locations due to change in favorable weather locationsue to

Optimized demand forecasts mean happier customers, improved market share, and increased margins. Visit Planalytics to learn more.