Retail sales are highly dependent on weather patterns, both on consumer behavior and business operations. As such, a retail weather forecast can boost marketing campaigns, uncover sales opportunities, and improve workforce planning.
By staying alert to adverse weather events and sales opportunities, you can give your online retailer or brick-and-mortar store a competitive edge.
The Role of Retail Weather in Modern Retail Operations
Weather influences when people want to shop, what they buy, and how they engage with marketing. This is true for both in-person retail and online sales, meaning that tracking weather is key for every element of operations.
Retail Demand Forecasting with Weather Insights
Weather is crucial in retail demand forecasting, as it affects both daily and seasonal demand. Predictive modeling can track sales performance in relation to weather, allowing companies to identify trends in customer behavior relative to things like temperature, precipitation, humidity, and even cloud cover.
Weather-Driven Retail Inventory Management
Medium-range forecasting is invaluable for retail inventory management. For example, if a heavy snowstorm is predicted in two weeks, businesses can plan their stock-outs to include warm clothing, canned food, and ready-made meals.
This is particularly important for perishables, one of the most challenging types of stock to manage. Knowing the forecast allows companies to make key decisions about how much produce to order and maximize revenue.
Adjusting Retail Staffing for Weather-Related Demand Shifts
Staffing is one of retail’s biggest costs, meaning companies must be strategic about the number of employees they have available. Businesses can adjust retail staffing based on the weather, including forecasted store traffic and delivery demands.
For example, during severe weather like flooding or hurricanes, few people will want to leave their homes. On rainy days or when temperatures are low, shoppers may opt for delivery rather than driving to the store. Sunny weather encourages people to get outdoors and shop, meaning that more staff should be available to meet their needs.
Retail Weather Analytics and Decision-Making
Weather analytics in retail sales allows managers to make data-driven decisions, both on a daily basis and for long-term needs. Integrating weather analytics into POS and ERP systems, such as through an API like Visual Crossing, improves demand estimates, ensures appropriate staffing, and enables a multi-factor approach to planning.
How Weather Data Supports Retail Forecasting
Both real-time and historical data play a role in predicting demand and planning daily tasks. For instance, if a big storm hit in March of last year, managers can compare the same-store sales of different product lines from before and after the storm to identify which products sold the best.
This allows the store to order the most valuable products, identify how many staff should be on hand, and adjust their advertising to meet customer needs if similar weather conditions occur this year.
Using Weather APIs for Retail Operations
A weather API connects real-time weather feeds to retail systems, like POS and ERP systems, for automated, real-time adjustments. This is helpful for both online sales and in-person retail sales. For example, an online store can reorder the products featured on the front page, pushing those that customers are most likely to purchase at the moment.
At brick-and-mortar locations, managers can update digital sales boards or rearrange stock to suit the current conditions. Some companies are also experimenting with real-time price adjustments, creating surge pricing when products are most popular. While the change may be only a dollar, this can translate to significant revenue over time.
Improving Supply Chain Agility with Weather Insights
Supply chain disruptions can cost stores significant money over time, particularly if products are late when they are most popular. Weather data enables companies to anticipate delivery delays nationwide, such as those caused by transportation issues due to a hurricane on the East Coast. Companies can also predict if there may be supplier issues because of inclement weather along a shipping route.
Seasonal Promotions and Weather Forecasting
Retailers can stay ahead of the competition by aligning their promotions with the expected weather. For instance, summer often brings sudden storms, especially in subtropical climates like Florida. Keeping umbrellas near the front of the store, or prominently featuring them on an online retail platform, can capture impulse buyers who may have left home without rain gear.
Retail Technology Integrations for Weather Readiness
Advanced weather forecasting can be easily integrated into retail dashboards and management systems for a more holistic perspective on current challenges. This is particularly important for online retail sales, where minute-by-minute adjustments can capture browsers who are looking for last-minute items.
For example, assume your team is preparing the week’s marketing emails and deals. Looking at the forecast for a given day can help you adjust your messaging to meet the customer’s immediate needs. If freezing temperatures are expected, marketing teams can write headlines with wintery themes and offer deals on items like coats, hot cocoa, heat packs, thick socks, or ice scrapers.
Benefits of Weather-Driven Retail Strategies
A retail strategy offers enormous benefits to companies at all levels of management. These include:
- Reduced waste through efficient ordering, particularly of perishable items
- Improved sales forecasting to better evaluate current strategies
- Optimized staffing, reducing overhead
- Enhanced client satisfaction by meeting immediate needs and predicting future needs
Final Thoughts on Retail Weather and Smarter Retailing
Retail weather data impacts every level of the company, from improving supply chain management to offering the perfect deals at any given time. You can mitigate risks such as late shipments, lower-than-expected reported sales, and poor-quality service.
APIs like Visual Crossing are easily integrated into your current retail management systems, providing advanced notice of adverse events so that you can quickly adjust your strategy as necessary. This way, you can stay ahead of other stores, offer the best possible service, and increase your sales. With more data at your disposal, you can make informed decisions based on current conditions and ensure that every shopper leaves satisfied.
FAQs about Retail Weather
How does the weather affect retail demand forecasting?
Weather influences the products shoppers want to buy and when they want to buy them. It also determines when and what to reorder from suppliers, how many employees to hire, and when to market certain products.
What role does weather play in retail inventory management?
It can help retailers identify what products to stock and how to boost foot traffic. For example, in hot weather, people want cold drinks, sunscreen, and hats, while in cold weather, they seek coats, warm food, and heavy boots.
Can weather insights improve retail staffing efficiency?
Yes, forecasting can ensure that you have the right amount of staff on hand and avoid overstaffing.
What is retail weather analytics, and how is it used?
Retail predictive analytics uses current and future forecast information to understand how weather conditions influence product sales and shopper behavior
How do retailers use weather APIs to improve operations?
Retailers can integrate a weather API, such as Visual Crossing, into their inventory management, marketing, and staffing applications to better plan their operations.