Facing the intricate challenge of expanding its network, a premier grocery chain in Australia prioritises selecting optimal locations for its stores and warehouses.
The site selection process must account for various factors, including demographic trends, accessibility, and historical and future climate patterns that could affect operations and sustainability.
In a landscape where climate resilience is paramount, the chain leverages Climatics, an advanced historical climate database, to navigate the complexities of environmental impacts, particularly focusing on flooding, bushfires, and drought conditions.
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Challenge
The grocery chain operates in a diverse geographic landscape across the country, where the varying risks associated with climate and natural hazards can significantly affect operational continuity and safety. With a strategic expansion plan in place, the company identified flooding as its most critical concern when looking at potential new sites, closely followed by the growing threats of bushfires and drought over the medium term. Accurately assessing these risks for potential locations is crucial to ensure the long-term viability and resilience of the company’s investments.
Implementation
In-Depth Flooding Analysis:
Utilising Climatics' comprehensive flood layer, the grocery chain used flood level models against the known floor height of their existing and potential store sites to identify areas more at risk of flooding and ensure new sites are built in safer zones.
Bushfire Risk Assessment:
With bushfires becoming an increasing concern, Climatics’ detailed Bushfire Event and Fire Danger Index history enabled the chain to assess the frequency and severity of bushfires around potential site locations. This has aided in the selection of lower-risk areas, enhanced site safety and design, and assisted in developing comprehensive emergency response strategies.
Drought Trends & Impact:
Understanding the long-term implications of drought conditions on site accessibility and supply chain sustainability, Climatics provided valuable data on drought patterns, helping the company to prepare for challenges associated with water scarcity. These included potential energy costs and efficiency, store design and landscaping options suited to drought conditions.
Customised Climate Reports:
The ability to generate tailored reports in Climatics allowed the grocery chain to evaluate each of their existing stores and potential new sites against the backdrop of 11 specific climate hazards, ensuring a comprehensive, data-driven approach to decision-making.
The introduction of Climatics has markedly enhanced the grocery chain's ability to mitigate climate-related risks. The focus on understanding and planning for flooding, bushfires, drought and other weather events has not only safeguarded their operations but also underscored their commitment to safety and sustainability. This proactive approach ensures that new stores and warehouses are strategically located and built to withstand the challenges posed by Australia's dynamic climate, securing the chain's future growth and stability.
This use of Climatics highlights the power of real, proven, climate data in informing retail infrastructure decisions. By leveraging Climatics for strategic expansion, store design, and climate considerations, Climatics empowers large retailers to make data-driven decisions that enhance resilience, sustainability, and profitability.