Management of stock for extreme weather leaves much to be desired

Despite the growth of e-commerce, 53% of consumers prefer to visit a shop when preparing for extreme weather. However, only a third are satisfied with retailers’ stock management. This is according to new research by Relex Solutions among over a thousand US consumers.

With extreme weather events such as hurricanes, tornadoes, heat waves and severe storms becoming more common, consumers are adapting their shopping habits. Retailers, however, are struggling to keep up. The Relex Extreme Weather Consumer report sheds light on these changing consumer preferences, the ongoing impact of the pandemic, and the critical need for retailers to improve their capability to keep shelves properly stocked during such events.

According to the data, more than half of surveyed consumers (53%) choose to physically visit a shop when making weather-related purchases. Only a third (33%) said they were satisfied with retailers’ service and stock management. Incidentally, there are regional variations in consumer satisfaction with retailers’ ability to maintain stock levels during extreme weather.

Increased stock of essential products

Almost 44% of respondents have kept a larger stock of essentials at home since the pandemic, 34% shop more often to avoid potential shortages, and 26% have switched to longer shelf-life alternatives, indicating that the pandemic has had a lasting impact on behaviour.

While the majority (53%) of consumers surveyed choose to visit a shop, 15% prefer online shopping with home delivery. This is for reasons of convenience and to avoid crowds. Only 6% of consumers buy online and then collect the items from the shop themselves as a way of ensuring availability and saving time.

Renaissance for in-store shopping

According to Laurence Brenig-Jones, VP Product Strategy and Marketing at Relex, in-store shopping is currently enjoying a ‘renaissance’. But retailers, he says, have work to do. ‘Retailers need to stay abreast of consumer preferences, especially around demand peaks and supply chain uncertainty, to ensure they stock their shops with the right goods at the right time. And especially during crucial periods such as a weather event.’

Findings from the study indicate a significant shift towards better-prepared consumers who adjust their shopping habits in response to frequent extreme weather events. This change in consumer behaviour is both a challenge and an opportunity for retailers. To respond effectively to the needs of these proactive consumers, retailers need to improve their own preparedness and responsiveness, Relex believes.

Improving demand forecasting

Improving demand forecasting and optimizing inventory management can ensure that the right products are available at the right time. By using real-time weather data and predictive analytics, retailers can better match their inventory to consumer expectations during critical weather conditions, which can increase customer satisfaction and loyalty.

‘As consumers adopt more proactive long-term preparedness strategies in response to increasing extreme weather events, this shift could have significant implications for the inventory management and product mix offered by retailers,’ Brenig-Jones says. ‘This approach will not only better meet consumer needs, but will also reduce the risk of stock-outs and excess inventory.’