Retailers can and must plan for the weather

An interesting discussion at RetailWire about whether retailers can plan for weather variations from year to year or from region to region. Despite several myths on the topic, there was strong consensus that it can and should be part of the planning process. My take:

You can and should plan for the weather, despite what “myth 1” says. It may not be possible to project exactly where or when above- or below-average temperatures will hit (even using long-range forecasting tools), However, it’s certainly possible to project total seasonal buys of categories like gloves, coats, etc. based on three-year or five-year averages. It’s a common mistake to base this year’s buy only on last year’s sales data — which may overstate or understate demand based on exceptionally strong or poor sales results.

It’s also critical for retailers operating nationally to be as flexible as possible about reordering and/or canceling goods, and using the tools at their disposal to make the smartest possible allocation decisions as close to need as possible.

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