Retailers, don’t blame poor sales on the weatherman
In the longstanding narrative of the “death of the high street”, analysts point in all directions to identify the causes of changes in customer spend in any given period. And, in true British fashion, one problem that is given a lot of attention is the weather.
The weather is somehow both the cause and the cure for retailer ailments. We’ve heard that the summer heatwave harmed retail sales (according to the BDO’s high street sales tracker). But it also encouraged spending and gave a “respite for beleaguered high streets” (based on Visa figures). In fact, the heatwave helped UK retailers (so says the British Retail Consortium).
In reality, it’s clear that we’ve been spending more on food, experiences and fans, while other retailers suffer the season-agnostic decline that is currently widespread in the industry, but that hasn’t prevented an array of contradictory headlines. Indeed, in March it was too cold, as ONS figures showing falling sales were blamed on the so-called Beast from the East.
While undoubtedly the weather plays a part in some of the problems facing retailers today, such variations are not a problem that will go away. It is perhaps time for retailers to stop relying on the fluctuations of the jet stream, and start creating weather-proof strategies that address customer need.
Customers shop again and again with brands that they have a strong connection with, that provide amazing experiences, and that they feel really “get” them. Forward-thinking retailers like MADE.com, Missguided, and ASOS understand this and are thriving.
The most valuable customers are those who regularly make repeat purchases, but many businesses fail to create the sort of customer journeys which lead to this kind of loyalty. A big part of achieving this is approaching customers as individuals, and creating relevant marketing experiences that appeal to their interests and tastes, rather than showering them with generic, untailored messages in the blind hope that something will appeal.
Retailers might be able to use weather data to improve the way that they communicate with customers. But they are sitting on a much bigger gold mine of customer data – information about what they purchase and browse, when and how often they do so, and what their favourite categories and products are likely to be.
However, instead of harnessing this data to get closer to customers, many retailers continue to resolutely send out generic communications to their entire customer base. The data they already possess has the power to completely transform the relationship they have with their customers – building loyalty in an age where competition is fierce.
This is essential if retailers are to secure those repeat purchases and customers that are needed for long-term business health – and will mean that even bad weather can’t freeze out retailer revenues.