Accurate weather forecasts minimise retail losses

With climate change affecting weather patterns, retailers are looking to incorporate accurate weather predictions into their demand forecasting systems to minimise losses and boost sales.

This StrategicRISK article examines how supermarket chain, Waitrose, is using weather forecasts - accurate to the hour and to specific locations - to reduce lost sales by 6% and costs by 2%. Retailers are also using seasonal forecasts to build reserve stocks of weather-related items in the warehouse, and minimise the impact of extremes of weather on sales and revenues.