Impact of Weather Data on Retailer Decision Making in India

Updated: 05 Nov 2024, 12:01 AM IST

Big-name retailers in India are increasingly leveraging weather data analytics to make informed decisions on inventory planning, pricing, and advertising. The demand for climate analytics is rising amid increased weather volatility.

Weather Data Analytics in Indian Retail

Big-name retailers in India, such as Walmart, are increasingly using weather data analytics to make strategic business decisions. Previously used primarily for inventory planning, weather data is now helping retailers localize advertising, optimize pricing, and predict consumer demand.

Localized Advertising and Pricing Strategies

Walmart, known for its innovative inventory planning incorporating AI software, adjusted sunscreen prices earlier than usual this year in response to weather forecasts. The wetter-than-usual autumn in certain U.S. regions influenced this decision, showcasing the impact of weather data on retailer advertising and pricing strategies.

Cloud Computing in Weather Analytics

A niche group of weather consultants, including firms like Meteonomics and Planalytics, are utilizing cloud computing to process vast amounts of weather data efficiently. The demand for such analytics is growing due to climate change-induced weather volatility.

Future Trends in Weather Analytics

The National Retail Federation has recommended retailers pay more attention to weather analysis, urging them to integrate new weather data tools focused on pricing into their analytical models. Planalytics and BearingPoint are collaborating to develop software for retailers to enhance their pricing strategies.

Impact of Weather on Retail Sales

Weather analytics are helping companies like Tractor Supply make informed decisions on discounting seasonal items based on weather forecasts. By analyzing historical sales data in relation to temperature fluctuations, companies can adjust pricing effectively to meet consumer demand.