Warmer Weather Bringing Cooler Sales?
The arrival of cold weather and last minute shoppers have traditionally helped boost U.S. retail sales each December. But with the recent streak of unseasonably warm weather across parts of the nation, many apparel merchants are appearing to "sweat."
On today’s "Power Lunch," CNBC’s Bill Griffeth asked whether shoppers will buy sweaters and coats; high ticket items that usually account for a large percentage of total December sales.
According to Retail Analysts Marie Driscoll, with Standard And Poor's--the impact of the warmer weather is expected to be mild.
“It could impact on sweaters and scarves as well as cold weather accessories, but given that we have a new fashion silhouette of long over skinny – that should buffer negative impact."
(Note: Long over skinny means wearing a long sweater over leggings.)
She added "And if apparel 'does' suffer people will move their money over to fashion jewelry – fine jewelry and accessories."
Jay McIntosh, Retail Analyst with Ernst And Young said, “It won’t impact gifting as much as self gifting. Cold weather encourages people to buy a sweater or coat for themselves. But the fashion trend that Marie mentioned will off-set some of that weakness."
Bill Griffeth asked of we’re making too much of this.
Jay McIntosh replied, “It could have an impact. Warmer weather can also hurt sporting goods – ski equipment and those kinds of things. “