Expect cool, wet conditions
August 1, 2008,
Last August was the third warmest in 113 years and marked the third year in a row of warmer than average temperatures. A major heat wave and drought settled over the Southeast from Georgia to Arkansas. Retail industry same-store sales gains beat analysts’ expectations of 2% to 2.5% gains with a gain of +2.9%. Historically, a hot August brings a 6% higher retail industry same-store sales gain than a cold August.
Replenishment plans built off of last year’s hot and dry conditions will bring a high risk for overstocking warm weather items across the South, where demand could be down as much as 10-50%.
Retailers whose main focus is outdoor furniture and accessories may want to consider a greater emphasis on markdowns and increased advertising to drive sales in a time of unfavorable weather and strong economic headwinds this year.
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Don’t miss the May digital edition of Casual Living and our third installment of the Elements series—Water. Also, contributor Laurie Rudd shares the latest in fashionable fountains and water features. And lastly, designer Libby Langdon shows how adding a little water—fountain, bubble wall or even a peel-and-stick beach scene—can up the ambiance in any showroom.
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