Alternative marketing thinking

iCONTRACT

Tesco Using Weather Data To Predict Sales?

Many years ago, a story in New York Times spoke of how Walmart uses predicitive analytics to improve store level sales. For instance, it was seen from past experience that when there is a hurricane warning the obvious things like flashlights will sell, but for unexpected stuff like strawberry pop tarts, sales apparently go up by up to seven times their normal volumes. In another take,the Times looks at Tesco, the British grocery giant known for its data driven marketing expertise. To better predict sales in its stores, Tesco has set up a weather team to better predict weather and understand what sells better in what weather. Tesco expects the team’s forecasts to help it reduce costs and avoid wasting food. For instance if barbecue meats have been stockpiled in stores with the expectation of good sunshine, but could be left unsold if the weather turns rainy. At Tesco, a temperature increase of 18 degrees generally triples sales of barbecue meat and increases demand for lettuce by 50 percent. Data can be a game changer in many businesses and companies like Walmart and Tesco are showing the retail industry what lies ahead…

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