From hot summers to freezing winters, seasonal forecasting can decide how shoppers would purchase when retailers introduce new product lines in their stores. Retailers who have a good understanding of seasonal forecasts can take advantage of shifts in the weather by effectively planning the store shelves. Also, running the right promotions at the right time can lead to an increase in sales and profits.
While there are seasonal trends in retail sales – New Year, Christmas, Black Friday, Thanksgiving, Valentine’s Day – the weather can play a huge role in enticing customers. Therefore, many retailers execute their store shelves to influence consumer’s purchasing behavior with the help of planogram software. Planograms are the visual merchandising tools, that help retailers in many aspects of their decision-making process to plan and execute their store shelves effectively. Below, we take a closer look at different seasons which can affect retail sales:
- When the sun shines: The sun plays a large part in retail ups and downs. One of the greatest influences it has is in the introduction of new product lines. If there is early summer, with fine hot weather from June to September, retail stores will bring summer line products like suntan lotion, air conditioner, summer apparel and flat sandals. But retailers may face trouble when the expected summer fails to materialize, as they are forced to start their store sales to get rid of the dead or unsold stock. That is why many apparel stores often introduce the next season’s product ranges before the season arrives. For example, an American summer running into June is forced to provide discounts for already introduced Autumn ranges to hit sales targets.
- A rainy day: Sometimes, extended wet weather can discomfort many shoppers to visit the store. That is why people prefer large retail stores, instead of busy streets and local stores. Rainy days can lead to an increase in demand for footwear including flip-flops, sandals, and clogs. Besides this, during wet days, many retailers find it hard to sell their summer stock, and they promote more offers to sell the left-over stock.
- Cold Weather: Extended cool weather can lead to a drop in apparel sales, as retailers are not ready to invest in the new spring or summer ranges yet. Due to the heavy cold, people would prefer to shop online instead of visiting retail stores in person. But grocery stores can drive their sales, as shopping for groceries online is risky. Most shoppers prefer in-store shopping because of product selection, convenience and product availability.
How to Minimize Risk and Forecast Each Season Effectively?
If the retailers have past weather sales data in their hands, they can minimize the risk of being over-stocked, under-stocked, and purchasing delays. Retailers should prioritize their customer experience by ranging products based on weather forecasts. This will help to satisfy them and improve their retail business by keeping customers coming back to the store. Reviewing the past sales data will allow retailers the opportunity to execute products on store shelves that are relevant according to the forecast. This also helps to take off products from the shelves, to prevent old and unsold stocks.
Overview of Nexgen POG
Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planograms can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planograms on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.
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