Weather volatility is the most impactful climate-related risk retailers face today. After all, no other external factor influences consumer demand as frequently, directly, or meaningfully as changes in the weather. Every day, the weather shapes people’s decisions: from the clothes they wear to the activities they pursue, from what they eat and drink to the chores they decide to tackle, and much more.
This paper is a collaboration between the National Retail Federation (NRF), the world’s largest retail trade association, and Planalytics, the leading provider of weather-driven demand analytics. While climate change is presenting the industry with significant infrastructure, supply chain, and sales risks, this report will focus on how a changing climate and increasing weather volatility influence retail sales and the practical steps individual companies can take to manage the related opportunities and risks.
