As Autumn approaches, we take a look at the impact extreme weather conditions can have on certain categories within the FMCG sector.
Cathy Evans, our Managing Director said: “Extreme weather conditions can have a substantial impact on FMCG retail sales, especially when it comes to the sale of certain categories of food and drink goods”.
As temperatures drop, rain falls or ice forms, the needs of consumers change which will result in particular brand purchases to match the occasions.
The UK’s seasonal weather is getting more and more unpredictable. However, CEOs rarely acknowledge the importance of weather on retail figures. John Lewis Managing Director, Andy Street, said in October 2014
“weather has a greater effect (on sales) than economic numbers, we’ve known that forever.”
Recently, The Weather Channel researched the effect of the British weather on UK businesses in a new report called ‘Weathernomics’. The report found that 60% of shoppers say that weather of all kinds has an impact on their shopping habits, a third don’t go to the shops in the rain and one in eight claim to shop more but switch to a shopping centre instead.
Last year we saw the warmest Halloween on records and Waitrose reported a 41% increase in sales of Halloween products. On the other hand, the unseasonably mild autumn was estimated to have reduced clothing sales by £700m.
So what can brands do?
Brands need to be agile and be able to react swiftly to weather changes. Those that are able to adapt in real time and at a local level will win commercially. Our Thermal Planning Service does just this, responding to surges in demand, ensuring products are available, visible and well merchandised.
So if there is a sudden change in temperature, our field sales team is able to respond to this efficiently and effectively and be in store on behalf of your brand within 48 hours. During these crucial periods, timing is everything. Working with a field sales team means that your brand can respond with with speed and efficiency to maximise sales.
Last summer, coastal stores for a leading retailer benefited from an uplift across the sauce category of 43%. Plus, a leading sauce manufacturer increased sales by 34% in weekly sales volumes. This increase was because we were able to support the brand and help them to capitalise on the surge in demand during BBQ season.
To find out more, contact a member of our team