From The Eye Of The Storm, AI Weather Prediction Is Impacting Retail And Logistics Decision-Making

A heat dome over Europe, fatal flash floods in Texas, wildfires in Arizona and Colorado national parks. That is just the past few weeks in the life of planet Earth as extreme weather events become more common and unpredictable.

An average of 3.4% of retail sales are directly affected annually by changes in the weather, according to research published by the American Meteorological Society. Applying this globally means the weather alone influences about $1T in retail sales every year. And that, in turn, affects real estate decision-making.

Planning for weather-driven demand, climate sensitivity and weather volatility across stores and distribution networks has become especially crucial for retailers and logistics operators in not only meeting consumer demand but also helping their inventory teams have the right product in the right place at the right time to avoid empty shelves.

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RSK: I`m not sure there is anyplace on earth that doesn`t have some sort of climate risk. Even in Madison, WI we have a tornado in the county every now and then, although not bad ones.