All posts tagged sales

It’s not gambling if you never lose

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When the business objective is entice retailers to pre-order a winter product despite promises of a warm winter, how do you overcome their reluctance due to risks associated with uncertain sales? As a result of climate change, this challenge is an increasingly common one, as retailers face going into seasons fearing “unseasonal weather”, whether that may be an unusually dry spring, cool summer, warm autumn, or any other weather condition or event considered adverse, unexpected, or unfavourable.

For the French sales team of Bridgestone, the reluctance of retailers to pre-order winter tyres in the July to September sales period because of the risk of Western Europe having a green winter this past year was causing just such a challenge. Retailers were understandably reluctant to stock up on a product that was for a weather condition that might not transpire, instead preferring to wait to order in the event of snow, which would result in Bridgestone losing sales and being vulnerable to logistical bottlenecks in case of sudden demand.

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Heat waves and the cool risk management solutions for companies affected by them

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An ice cream parlour that closes in the throes of summer, refreshing soft drinks and beer being eschewed by customers when the mercury soars… What to make of consumer behaviour and how businesses compete and manage their risks in the summer months

Nestled in a quiet neighbourhood on the picturesque Ile St. Louis, in Paris, France, is possibly the most celebrated ice cream maker in the world, so well-known for its artisan quality and variety of ice creams and sorbets, lines routinely stretched around the block to its discrete bistro. This iconic glacier is a celebrated and essential component of the Paris experience, for aficionados and tourists alike. Yet, in the hottest month of the Paris summer, when ice-cream is undoubtedly the most in demand, and visitors are arriving in droves to the capital eager to sample this incontournable classic, Berthillon remains, in what can only be described as one the greatest snubs of capitalism, firmly, resolutely, even aggressively, shut. An ice cream parlour closed, the entire month of August. Sacrilège!

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Does Geographic Diversification Work to Mitigate a Company’s Weather Risk?

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Meteo Protect has released a ground-breaking new study tackling the decades-old presumption that companies operating in different regions mitigate the losses sustained in one region as a result of unfavourable weather in another. Multinationals take note: when it comes to managing weather risks, you may be steering your ships right into the storm.

Weather affects sales volumes and profits of many firms in many sectors. The risk to which firms are exposed is not a matter of regular seasonal fluctuations but rather deviations from the seasonal cycle. For example, when the summer is cooler than normal, a brewer sells less beer, and heating demand is lower if winter is warmer than usual. Overall, it is estimated that 70% of the firms are exposed to weather risk and the financial losses caused by unseasonal weather can be very significant.

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