Introduction
Intense rainfall across the country is influencing consumer behavior, reducing the frequency of physical store visits and promoting digital channels as well as specific product purchases, according to industry experts.
Expert Opinions
Óscar Balcázar, CEO of Serta, Intelligence Partner
Balcázar explained that as people find it more difficult to leave their homes due to heavy rains, shopping priorities shift towards essential items. He also noted a rise in digital consumption, with hypermarket products gaining more attention.
“While not all consumers are ready to shop online, even for basics, many traditional shoppers still prefer visiting physical stores,” Balcázar added.
Roberto Solano, Economic, Cambiario and Bursátil Analyst at Monex Casa de Bolsa
Solano concurred that poor weather conditions affect both the frequency of shopping trips (with higher ticket amounts) and the chosen purchasing channels.
“People still need to buy essential items, but the shopping frequency might change from twice a week to once due to adverse weather conditions,” Solano explained.
José Antonio Fernández Garza-Lagüera, General Director of FEMSA’s Proximity and Health Division
Fernández acknowledged that heavy rains negatively impact OXXO store performance.
“Last year was one of the wettest in the northern regions, reducing customer visits. To counteract this effect, we plan to launch promotions to encourage consumption and regain customer traffic,” Fernández stated.
Unpredictability of Weather Impact
The experts emphasized that although annual rainfall is common, its intensity, duration, and regional variations make it challenging to predict the extent of sales impact.
“Severe weather phenomena, like hurricanes, can significantly affect both self-service chains and neighborhood or convenience stores due to temporary closures or damage,” explained Cristina Morales, analyst at Signum Research.
Seasonal Product Demand Shifts
“With this ‘cold summer,’ as Roberto Solano described it, the demand for basic and seasonal products tends to increase historically. Items like bread, cookies, confectionery, and hot beverages usually see a rise in sales,” the experts noted.
Ian Craig, General Director of Coca-Cola FEMSA, confirmed a decrease in soft drink sales due to the rainy weather. In Q3 of the previous year, the beverage company’s volumes dropped by 1.5% due to unfavorable climate conditions.
Key Questions and Answers
- Q: How does weather affect consumer shopping habits? A: Intense rainfall reduces physical store visits, encouraging digital channels and specific product purchases like essential items.
- Q: What changes in shopping frequency and channels do experts observe? A: Shopping trips become less frequent, with higher ticket amounts, and consumers opt for digital channels or traditional physical stores.
- Q: How do severe weather events impact retail stores? A: Temporary closures or damage to stores, affecting both self-service chains and neighborhood or convenience stores, can significantly impact sales.
- Q: Which products see increased demand during rainy seasons? A: Basic and seasonal items, such as bread, cookies, confectionery, and hot beverages, typically experience higher sales during these periods.
- Q: How do soft drink sales perform during rainy weather? A: Soft drink sales usually decrease due to unfavorable climate conditions, as observed in Coca-Cola FEMSA’s Q3 performance.
