Retailers like Walmart are using advanced weather data to shape local promotions and inventory, adjusting prices on seasonal items like sunscreen and winter gear. New tools help companies plan amid unpredictable weather patterns driven by climate change.
Retailers like Walmart are using weather analytics to navigate shopping trends affected by unpredictable conditions. Once limited to inventory planning, weather data now guides promotions and regional advertising. For example, Walmart discounted sunscreen earlier than usual, considering forecasts for a wetter autumn, according to Kirby Doyle of Beiersdorf, Walmart’s supplier.
Weather consultancies such as Meteonomiqs, Planalytics, and Weather Trends International are leveraging cloud technology to process large datasets as climate-related weather volatility rises. The National Retail Federation recently advised retailers to focus more on weather data in planning.
New pricing tools may soon emerge as Planalytics and BearingPoint develop software that incorporates weather trends into pricing decisions. "While weather can't be controlled, analytics and pricing can," noted Ryan Orabone of BearingPoint. Retailers like Tractor Supply also use this data to adjust inventory, as they rely on cold weather for Q4 success.
Retailers sometimes misinterpret data; in May, Lowe’s CFO cited cool, wet weather as a factor in weak sales, although it was actually one of the hottest Mays on record, according to Bill Kirk from Weather Trends.
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