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Some of the largest retailers in the nation are increasingly using analytics to reduce the impact of unpredictable weather on sales, Inc. reports.
Once used strictly for inventory planning, weather predictions are now helping retailers localize advertising and decide when to discount seasonal items, such as sweaters and sunscreen.
It is natural for a warm October, like this year’s, to cause retailers to be nervous ahead of the holidays.
“It needs to get cold for our business to really perform well in Q4,” Tractor Supply CEO Hal Lawton said last month on a quarterly call.
Weather analytics can help companies like Tractor Supply decide whether to discount winter items, such as heating pellets and outerwear, says Planalytics CEO Fred Fox, whose clients include Dick’s Sporting Goods and Ross Stores. If November temperatures in the U.S. drop below 2023 levels—which forecasts suggest is likely—a discount now could mean a missed opportunity later, Fox says.
