Retail Systems Research Uncovers Retailers' Forecasting Challenges In First Annual Demand Forecasting Benchmark Report, Sponsored By Predictix
RSR to present its research findings in complimentary webinar on May 11
Retail's heavy reliance on promotions, combined with fragmented demand and the lingering effect of the economy on consumers, are among the factors making it increasingly difficult for retailers to accurately forecast demand, according to a research study released recently by Retail Systems Research and sponsored by Predictix.
"Crystal Ball 2.0: The State of Retail Demand Forecasting" takes an in-depth look at how changes in the business cycle and the growth of omni-channel retailing have impacted demand forecasting. The report was co-authored by RSR analysts Nikki Baird and Brian Kilcourse. RSR will present its findings in a complimentary webinar on May 11, hosted by Retail TouchPoints and sponsored by Predictix. RSR's Kilcourse will provide an exclusive analysis of the research during the webinar, along with recommendations for improving demand forecasting accuracy. Retailers and industry experts interested in joining the complimentary webinar on May 11 can register here.
The increasing sophistication and expanding role of demand forecasting present new opportunities for retailers to fully optimize everything from assortment planning to pricing, space management and replenishment in both their traditional and new digital selling channels. However, retailers face significant challenges across all disciplines, and most retailers struggle to understand demand due to siloed forecasts and other factors. For example, RSR's research points out that:
- Consumer price sensitivity, driven by aggressive competitive pricing, excessive promotions, and price transparency using mobile devices, has created major challenges for retailers in demand forecasting.
- Retailers find it increasingly difficult to understand cross-channel events that affect customer behavior and channel demand – challenges that are amplified by retailers' inability to reconcile differing forecasts and to easily update forecasts in-season.
- Even the best retailers continue to struggle with traditionally challenging forecasting problems (such as promotions, new product introductions and short lifecycle products).
"I was impressed by the spread of demand forecasts internally to retail organizations," said Nikki Baird, managing partner at RSR Research and co-author of the report. "But for the most part, our research shows that those forecasts exist within silos, and retailers are still trying to figure out how to get a single picture of demand."
"Understanding how retail winners are differentiating themselves from the rest of the industry when overcoming forecasting challenges is invaluable for all retailers," said Rafael Gonzalez Caloni, executive vice president of marketing, Predictix. "We are proud to partner with RSR in bringing this information to the retail industry through the benchmark report and webinar."
The complete findings from RSR's first annual benchmark report on Demand Forecasting, along with analyst recommendations, is available at no charge at www.retailsystemsresearch.com.
About Predictix
Retailers, wholesalers and brands make better forecasting, planning, assortment, pricing, and replenishment decisions with the Predictix merchandising software suite. Our clients get started quickly and see value early thanks to our cloud-based solutions and our agile approach to delivery. Our predictive technology is more accurate and drives better decisions in today's changing environment. Building on our executive team's experience in leading well-known retail technology companies, we've developed our software from the ground up so our clients can completely tailor and readily adapt it as their business needs change. With no hardware to buy, software to install, or long-term commitments to make, we are changing the way our clients invest in and get value from technology. For more information, visit www.predictix.com.
SOURCE: Predictix