Retail forecasting: football might be coming home
As football fans across the globe prepare for the big event, England fans are undertaking their own pre-tournament rituals. Stocking up on everything from the new widescreen TVs to beer and snacks, events like the World Cup provide retailers with a welcome boost in sales. After all, the world cup will provide many sports enthusiasts with a great excuse to drink endless amounts of beer.
Ultimately, much like England’s performance, demand fluctuations are inevitable and there is always there the risk that it will never materialise at all!
This poses retailers with two-real challenges:
1) Ensuring there are sufficient levels of inventory to keep up with match-day peaks in demand
2) Mitigating the risk of excess after the World Cup (or rather when England get knocked out prematurely)
Events like the world cup present businesses with a real challenge: on one hand, retailers do not want to leave football fans disappointed with stock-outs. Yet on the other, no one wants to be left with huge amounts of excess stock at the end of the tournament: especially if these products have been branded specifically to tailor for the world cup.
It is not just the overall increase in demand that retailers have to worry about: demand will also vary hugely between different channels and locations as well on a day to day basis. With this in mind, retailers not only have the question of whether they have enough stock but also what stores they must allocate to!
With demand as uncertain as England’s ability to get through the group stages, what can you do to prevent your operations being left in the lurch?