Unseasonably warm autumn weather spanning from the United States to Europe is causing a setback for retailers, including major names like H&M, as heavy sweaters and coats languish on the shelves just ahead of the crucial holiday shopping period, reported Reuters. Retail executives are witnessing a decline in sales of warm clothing, leading to an early wave of discounts to prevent excess inventory buildup.
Over the past year, retailers have been striving to clear surplus stock accumulated due to a shift in consumer focus toward essential items rather than discretionary purchases like clothing. However, with warm temperatures expected to persist into the fourth quarter, stores stocked with winter merchandise may face a surplus at season’s end.
H&M’s upscale brand Cos has initiated a 20 per cent discount sale both online and in stores for knitwear and outerwear, including merino wool sweaters and long puffer coats. H&M’s CEO, Helena Helmersson, said that consumers are delaying purchases of “heavy” autumnal items due to the warmer weather conditions.
European company Pepco Group also highlighted that their autumn and winter clothing stock arrived amidst persistently warm weather in their core Central and Eastern European markets.
As the holiday shopping season has been starting as early as October in recent years, many retailers have been offering deals and discounts throughout the month until December. However, this year’s warm trend may affect sales significantly, with Amazon.com hosting a second Prime Day on 10th-11th October, Best Buy announcing a 48-hour flash sale on 10th-11th October, and Target initiating a “Deal of the Day” program from October onwards.
In the United States, Weather Trends International predicts a rise in temperatures by 2 to 12 degrees Fahrenheit on average during the October-December period compared to last year. This warming trend, stretching from Black Friday to Christmas, is expected to lead to excess inventory and substantial markdowns, according to Bill Kirk, CEO and founder of Weather Trends International.
Retailers like Walmart and Dick’s Sporting Goods may face challenges, but companies such as Costco Wholesale and off-price retailers like TJX, which can procure products locally and adapt to seasonal shifts, might fare better.
