Business weather intelligence company Planalytics has partnered with global information company The NPD Group to provide apparel retailers with insights into how the weather affects demand for specific products.
Thanks to the collaboration, Planalytics can now apply its weather impact modelling technologies to NPD’s point-of-sale (POS) data from retailers to provide companies with “much-needed” visibility into how a key critical external variable influences sales.
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Through this partnership, customers who purchase NPD data can access Planalytics’ Weather-Driven Demand (WDD) analytics to understand how changes in the conditions outside impact the sales of specific products on a week-by-week basis by regions or markets. These WDD metrics precisely calculate how sales have been or will be affected in apparel, footwear, accessories, sporting goods, automotive, beauty, toys, home, and other weather-sensitive segments.
“Combining NPD data with weather insights will enable customers to more proactively manage weather-based sales volatility in their business and capture both top-line and bottom-line benefits as a result,” says Antoine Verrier, vice president of corporate business development at The NPD Group.
With NPD data-based WDD analytics, retailers and consumer goods suppliers can more clearly understand performance from a weather-adjusted viewpoint. For example, the evaluation of sales results across regions, advertising effectiveness, and promotional programmes all benefit from a “weather corrected” perspective in which the positive and negative weather effects are isolated and quantified. From a forward-looking standpoint, companies can utilise weather analytics to better align inventories and businesses resources with projected consumer demand changes, Planalytics says.
The firm claims it helps improve planning accuracy by accounting for weather biases embedded in sales histories, with gains of 20% or more typical for many weather-sensitive products.
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By GlobalData“Working together with NPD offers an exciting opportunity to bring valuable insights to leading retail and consumer brands, many whom rely on NPD’s data assets and expertise,” said Evan Gold, executive vice president, global partnerships and alliances at Planalytics. “These companies know that weather volatility will always play a part in their sales performance and together we allow them measure and more effectively manage this reality.”
