Seasonality Definition

Seasonality can be defined as the repetition of events at fixed time in a time cycle. In the context of retail, seasonality can be defined as the repetition of patterns in consumer behaviour in a given period of time, mostly in a year. Just by intuition, we know that sales peak every year around Christmas and new year. The repeatability of patterns does not need to coincide exactly by day. For example, Indian festivals fall on different dates each year. But you can see their impact on the sales numbers every year.

Why Seasonality Consideration Is Important

Seasonality in retail represents events where the sales are usually high or low as compared to the “normal” pattern. This means that to cater to such almost predictable demand patterns, the retailers usually plan well in advance. The seasonal demand patterns provide a great opportunity for retailers to sell their products at an accelerated rate and also find cross-sell and up-sell opportunities.

Challenges To Determining Seasonal Demand

Determining seasonal demands requires consideration for multiple factors. Some for the factors which are listed below would, for example, introduce noise to the data, making it difficult to forecast seasonal demand

How To Overcome These Challenges

Basics never change which means the primary methods of overcoming uncertainty is better planning, tight execution and agile configuration for teams and processes.

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