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Retailers, consumers and prices

October 7th, 2008

Check Out Line: Mother Nature matters more than ever

Posted by: Ben Klayman

rain2.jpgCheck out the cool and wet weather that hit U.S. retailers in September as the month will go into the books as the fifth coolest in the last seven years and much cooler than last year, according to Planalytics Inc, a business weather tracking company.

While the mean September temperature in the 96 largest U.S. metro areas fell about 4 points from last year to 64.2 degrees, retailers selling rainwear (demand up 29 percent based purely on weather), pants (up 13 percent), dehumidifiers (up 10 percent) and hot cereal (up 2 percent) benefited, Planalytics said.

September also was the 11th wettest since 1961, driven by six tropical storms, including Hurricane Ike, the consulting firm said. Some cities, such as Chicago, St. Louis and Wichita, Kansas, had their wettest Septembers ever recorded, while Houston, Kansas City and Little Rock, Arkansas, had months that still ranked among the the 10 wettest.

“The tropical systems that pummeled both the Gulf and Atlantic coasts became the real weather story of the month. Despite challenging economic times, businesses that supply pre- and post-hurricane staples such as gas, ice, water, non-refrigerated foods, generators, tarps, plywood, and chainsaws experienced brisk sales in the affected areas, driven by need-based purchases” Fred Fox, Planalytics CEO Fred Fox said in a statement. “In addition, foot traffic into grocery stores, restaurants, and hotels was robust along evacuation routes.”

The weather was a favorable factor for 78 percent of the publicly traded companies tracked by Planalytics, with the biggest positive comparisons seen at BJ’s Wholesale Club (store traffic up 24 percent), Family Dollar Stores (up 22 percent), Shoe Carnival (up 16 percent) and Target (up 13 percent).

More broadly, the index for retailers that sell a broad line of merchandise was up 14 percent based solely on weather, and it rose 8 percent for retailers that sell mostly apparel, Planalytics said. On the down side, were indices for home centers (off 4 percent) and restaurants (off 6 percent). 

Also in the basket:

Global Fears of a Recession Grow Stronger (New York Times)

Home Depot Learns to go Local (Wall Street Journal)

Safeway third-quarter profit rises

(Photo/Reuters)

June 9th, 2008

Temperatures favor retailers for a change

Posted by: Nicole Maestri

beach.jpgRetailers looking to sell seasonal merchandise got a helping hand from the weather last week — at least in some parts of the country.

According to weather tracking firm Planalytics, the week ending June 7 marked the first time in 7 weeks that the temperature average across North America was warmer than the same week the prior year.

It was only the 8th week this year where temperatures across North America were warmer compared to last year, Planalytics said.

The higher temperatures in the East and Mid-Western North America sent consumers to the stores in search of air conditioners, shorts, sandals, and cold beverages. 

“For those areas that experienced severe storms, demand for emergency items such as generators, batteries, and canned foods surged,” Planalytics said.

But in Western portions of North America, cooler temperatures and occasional periods of rain kept seasonal demand levels muted, it said.

(Photo: Reuters) 

May 7th, 2008

Check Out Line: Let the sunshine in

Posted by: Brad Dorfman

sun21.jpgCheck out a little retail sunshine.
 
The weather finally got a little better in April, which helped retailer’s sales even as the economy stayed week, according to Planalytics.
 
“While April 2008, on a national level, may have been an ‘average’ month in terms of temperature — the weather helped unleash pent up demand, improving sales in the Northeast, Midwest and the Ohio Valley,” the consulting firm said.
 
The company, which provides weather information for businesses, said home centers, restaurants and softline retailers all showed positive year-on-year gains. 
 
It called out Bon-Ton, Dress Barn, Family Dollar and Lowe’s as having the strongest sales gains.
 
“While the economy remains sluggish, the weather has certainly done its part this month to improve business’ fortunes,” said Scott Bernhardt, Planalytics Chief Operating Officer.
 
Also in the basket:
 
Dr Pepper Snapple to focus on brands, U.S.
 
Unilever looks for Bertolli sale deal: sources 
 

(Photo: Reuters)

April 11th, 2008

Could there be sunshine on the horizon for retailers?

Posted by: Nicole Maestri

umbrella.jpgMarch’s weather was not exactly a friend to retailers.

It was cold, damp and even snowy in parts of the country — not quite ideal weather conditions for retailers trying to sell new spring goods, like dresses, sandals, or even fertilizer. (We saw the extent of their struggles on Thursday, when retailers reported dismal March sales figures)

While weather is obviously a very local phenomenon, April so far has not been much kinder than March. According to weather tracking firm Planalytics, this weekend – April 12th and 13th — will be a repeat of most Eastern weekends this spring — a mixture of storminess and cooler temperatures.

But wait … could an upper air pattern be coming to the rescue?

Planalytics said its meteorologists see a change in the upper air patterns between April 16th and 20th. That should result in warm, fair conditions over much of the East and Southeast, extending westward into Texas and as far north as southern Ontario and Quebec, the firm said. 

“Pent-up demand is strong in the East, from the Carolinas to the major Canadian cities of the St. Lawrence, where consumers have been anxious to get out and about. Their gardens need tending, bicycles tuning, and kids want out of the house,”  Planalytics said.

Get ready for surging demand for shorts, sundresses, fertilizer, grass seed, bottled water – even beer — Planalytics said, as people flock to the stores or enjoy the outdoors.

But we can’t all enjoy better weather.

“Unfortunately, the same change turns the Northwest cool and stormy and keeps many of the western and central Canadian provinces out of the fair weather,” the firm said.

(Photo: Reuters)