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Wednesday, September 21, 2016

On Predictability of Demand

Discussion in Retailwire: 

" ... According to RSR’s benchmark report on omnichannel order profitability, unpredictable consumer demand is the top business challenge among retail respondents. After much consideration, I would offer that consumer demand isn’t really that unpredictable. Instead, retailers are just really bad at predicting it.

Part of the issue is one of “garbage in” — as in, “garbage in yields garbage out.” There seems to be a lot of garbage in the inputs retailers use to decide what to stock where. First, a lot of them start with last year’s plan, which means the bad assumptions made last year are automatically carried over into this year. ... " 

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