How Home Depot Is Harnessing Weather Data To Drive Local Retail Sales [Yahoo! Finance]
International Business Machines Corporation (IBM)
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Source: Yahoo! Finance
Courtesy of The Weather Company and Home Depot Everyone in retail knows that the weather has a profound impact on sales. Retailers have long blamed weather for poor quarterly performance. But the real issue isn't the weather itself—it's the failure to put predictive weather data to work to drive sales, rather than passively let it dictate results. The American Meteorological Society found that an average of 3.4% of retail sales are directly affected by weather changes each year—roughly $300 billion out of the $8.7 trillion in U.S. retail sales last year. The National Retail Federation underscored just how important it is: “No other external factor influences consumer demand as frequently, directly or meaningfully as changes in the weather.” Home Depot is one of the retailers most exposed to weather-driven demand changes. With a fleet of about 2,000 U.S. stores, its business hinges on seasonal DIY projects, storm preparation and recovery and outdoor activities. Yet changes in ye
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