The Future of Retail Forecasting: Weather, AI, and the Demand Planning Revolution

For some retailers weather forecasting is demand forecasting

“We’re still heavily dependent on winter weather.” — Tim Boyle, CEO/Columbia Sportswear

Retailers have long understood that weather can make or break sales. From sudden cold snaps driving demand for winter gear to unexpected heat waves boosting sunscreen sales, weather significantly influences consumer behavior.

But what was once an unpredictable force is now becoming a strategic advantage—thanks to AI, machine learning, and increasingly precise weather data.

Google unveils new AI-Powered weather predictions

AI weather models are in their infancy but have demonstrated remarkable accuracy. Those advances have come as certain extreme weather events are becoming more intense and frequent due to human-caused global warming.

Source: Andrew Freedman / Axios

Some new consumer demand forecasters liken their capabilities to weather forecasting, but for some retailers, weather forecasting is demand forecasting.