Weather and its effect
Profit margins in retail all depend on the juggling around of hundreds and thousands of product lines across outlets. From customer demand patterns and short-term spikes to transport logistics, the effects of weather should be a concern in all aspects of retail.
While it doesn’t happen as often as we would like but the sun has a big influence when introducing new lines. If the prediction is for early hot weather, around April and May then bringing in summer lines earlier becomes an option, this could be anything from beach clothing to BBQs.
Of course, though this could also be a risky thing to do if the expected hot weather fails to come, leaving retailers forced to start sales early.
In Britain, we get a lot of cold weather but it can have a serious effect on shopping habits if we experience an extended winter period that continues cold days into March and April. This can lead to a drop in the sales of clothing as people aren’t wanting to invest in any new summer cloths yet.
One of the largest things that changes are people’s willingness to go outside rather they turn to the internet to do their shopping. Food and Clothes are more commonly bought online in cold weather.
Though it can bring some good news for other sellers with things like duvets and blankets rising in sales over the cold weather periods.
In conclusion, weather can provide both risk and opportunity. Understanding both, and ensuring accurate guidance is available to your whole retail network is the key to making the right decision when considering the weather conditions.