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Record high temperatures effect winter wardrobes and retailer's net sales

Record high temperatures effect winter wardrobes and retailer's net sales

by Phoebe Dinner 

The average temperature in the month of December was 51.2 degrees in Washington DC. That is 11.5 degrees warmer than normal for the area. As nice as it is to walk outside in December without a winter coat, retailers depend on cold weather to sell their clothes.

 There is a difference between a cold day and climate change according to Tim Canty who is a research assistant professor in atmospheric and oceanic sciences at the University of Maryland.

 
“The climate is changing and humans are responsible for the rise in temperature,” Canty said. (Tweet this)

Climate change is not something felt within one day, it is an event that is decades in the making.

Climate change directly effects economy

Although the effects of climate change are gradual, this past winter season sales decreased for many fashion retailers.

According to the National Oceanic and Atmospheric Administration October 2015 was the number one warmest month compared to the 20^th century average temperature.

October is the end of the third quarter fiscal year for retailers and Gap Global’s net sales were down to $1.4 million from $1.5 million in 2014.  Banana Republic Global’s net sales fell to $627 million from $706 million. 

There was a similar decline in sales at Macys. At the end of the fiscal year’s third quarter. Macy’s net sales went from $6.2 million in 2014 to $5.87 million in 2015.

After the 2015 holiday season Macy’s comparable sales declined by 5.2 percent in the combined November/ December period, according to the press release from Macy’s inc.

Terry J. Lundgren, Macy’s Inc. chairman and chief executive officer said in a press release that Macy’s Inc. was particularly disadvantaged by the historically warm weather. He also said about 80% of our company’s year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats gloves and scarves. 

Macy’s Inc. announced after this decrease in earnings that they will cut over 4,000 jobs.

Retailers adapt to climate change

“What we’re seeing for sure is that the summer season is longer and if you’re locked into the old fashion way of doing it [retail] then you better adapt,” Ross Salawitch, professor in the department of atmospheric and oceanic science at the University of Maryland said.

Walking along Mckeldin mall at the University of Maryland in late February one can see students wearing T-shirts and jeans without much concern for the weather. Retailers now have to respond to this seasonal change in demand.

“When I am shopping for my winter wardrobe, I’m not going to buy a new winter coat unless it’s going to be consistently cold,” University of Maryland senior Jaimee Schuster said. “If the forecast is calling for 65 and sunny, I’m not buying a scarf just because it’s January.”

Businesses are going to have to adapt to this new kind of business model that revolves around the warming earth. Gap, Inc. won’t stop selling warm and cozy cable knit sweaters next season but beyond that is unknown.