Global warming could have a direct impact on the supply and demand of grocery items and produce in the next five to ten years, according to scientists from the Met Office’s Hadley Centre for Climate Prediction and Research.
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Speaking at this year’s IGD Convention on 14 October, the Met Office, the UK’s national weather service, will urge the grocery retail sector to take action now by understanding the implications of climate change on their business and preparing to meet changing consumer demand.
Britain is experiencing less definition between seasons, such as spring-like conditions occurring earlier in the year than usual, which could have an effect on when retailers begin stocking warm-weather products. The Met Office expects that winter product demand could decline and that there could be an almost year-round increase in summer product demand.
Speaking before the convention, Peter Gibbs, Met Office broadcast meteorologist, said: “Climate change will affect all aspects of British life – and retail is no exception. But if retailers are able to adapt and use weather information as a business tool, they could maintain a competitive advantage in a changing climate.
“Weather already has an impact on retail sales. Some retailers made millions of pounds of extra sales by adapting their stock levels and marketing promotions on the back of advance weather warnings from the Met Office. In a changing climate these advance warnings will become more and more crucial to retail supply chain, marketing and general business planning decisions.”
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By GlobalDataThe recent summer heatwave was an indication of how the changes in the UK climate might impact the grocery retailer sector. Supermarket chains announced record-breaking sales for their warm-weather products, with Safeway selling 800% more burgers, 500% more hot dogs and 400% more sunscreen, while Tesco reported record sales of ice cream. Sales of some product lines can increase or decrease by as much as 300% to 400% over short periods, even given fairly small changes in temperature. If retailers are not taking weather forecasts into account when planning stock levels and promotion, these changes could directly hit profits.
According to a recent report commissioned by the Met Office, the use of weather information could be worth £3bn (US$5.0bn) annually to the UK grocery retail sector.
