Unseasonably warm autumn weather across the United States and Europe is causing a decline in sales of heavy sweaters and coats as the holiday shopping season approaches. Major retailers such as H&M are already reducing prices in an effort to avoid excess inventory. The warmer weather has led shoppers to delay purchasing “heavy” autumnal items. Weather tracking firm Weather Trends International predicts above-average temperatures for the fourth quarter, leaving stores with an abundance of winter inventory.
The warm weather is particularly affecting retailers like Walmart and Dick’s Sporting Goods, which rely heavily on winter clothing sales during the holiday season. However, off-price sellers like TJX and Costco Wholesale, who can source products locally and adapt quickly to seasonal changes, may benefit from the situation. Analysts warn that if winter clothing does not sell well during the holidays, retailers may be forced to heavily discount merchandise in early 2024.
Retailers face challenges as they place orders and ship items in advance to meet customer demand for important seasons. Unfavorable weather can disrupt these buying trends, leaving stores with excess inventory. Despite the decrease in sales of heavy outerwear, retailers have noticed a continued demand for seasonless and year-round clothing items. The ability to successfully stock seasonally appropriate items becomes increasingly important for retailers to mitigate costs associated with excess inventory.
In conclusion, retailers are experiencing a decline in sales of heavy sweaters and coats due to unseasonably warm autumn weather. With the holiday shopping season approaching, stores are slashing prices to avoid excess inventory. This trend is particularly affecting retailers reliant on winter clothing sales. However, others may benefit from the changing weather patterns by offering seasonless and year-round clothing items. The ability to adapt to these seasonal changes becomes crucial for retailers to avoid costly storage of unsold inventory.